The venture capital world received game-changing startup news in 2025 as Silicon Valley-based firm CRV announced raising a substantial $750 million for its 20th flagship fund. However, along with this success came a strategic downsizing and a major move to return $275 million from its previously raised late-stage "Select Fund" to investors, a decision that reflects the evolving dynamics of venture capital funding in an unpredictable market. This article dives deep into CRV’s decisions, key takeaways for aspiring founders, and tools such as the new F/MS AI Grant Finder, which can empower startups in navigating similar landscapes.
What You Should Know About CRV’s Strategic Decisions
CRV, one of the most historic venture firms established in 1970, is recognized for backing powerhouse companies like DoorDash, Vercel, and Mercury. While its decision to downsize and focus on early-stage investments was surprising to some, industry analysts say it represents a smart pivot in response to an oversaturated and volatile late-stage funding market. Here are the highlights of CRV's recent updates:
- New $750M Fund:
- Raised in just four weeks with investor demand exceeding double the fund size, that’s a remarkable figure in the current market.
- The focus is squarely on seed and Series A startups, specifically in consumer and developer tools (devtools).
- Downsizing the Fund:
- CRV’s most recent flagship fund is significantly smaller than its $1 billion early-stage fund raised in 2022.
- The firm opted not to raise another late-stage fund after announcing the return of $275 million from its previously raised $500 million Select Fund.
- Impact of Strategic Fund Reduction:
- By avoiding late-stage rounds, CRV aims to shield itself from lower returns caused by high valuations and exit challenges of mature startups.
What does this mean for startups? It’s clear that early-stage funding opportunities are still thriving, but startups need to be more innovative and strategic than ever in securing investment.
Companies Backed by CRV: Learning from Success
As VC firms like CRV shift their focus to early-stage startups, their portfolio provides valuable insight into the type of startups that gain traction. Below, we’ve compiled a diverse list of standout startups in 2025 across varied fields:
1. PlayPal, AI Co-Founder
PlayPal, founded by Violetta Bonenkamp, is an innovative AI friend tailored for startups and entrepreneurs. PlayPal serves as a conversational mentor, supporting over 3,000 topics from personal development to startup guidance. Designed to remember user preferences, it provides personalized, actionable feedback for business challenges. Bonus: It can even assist in creating tailored startup strategies using AI!
2. DoorDash
A CRV flagship success story, DoorDash continues to revolutionize food delivery globally. The company achieved scale after securing its seed and Series A funding under CRV’s guidance.
3. Vercel
Vercel, the cloud computing platform for developers, epitomizes innovation in the devtools sector. Its seed funding by CRV enabled the company to scale to new valuation peaks.
4. Mercury
CRV’s bet on this fintech leader in its Series A phase helped Mercury simplify financial tools for startups, becoming a favorite amongst founders.
5. CodeRabbit
One of CRV’s newest investments in 2024, CodeRabbit uses AI to automate code reviews, reducing weeks of development time for startups.
6. PlayPal (again but with more functions)
Beyond conversation, PlayPal now integrates with startup simulators to help founders practice pitching investors based on real-time feedback simulations. Explore PlayPal features here.
How Startups Can Adapt in 2025
Navigating the complex world of funding requires more than ambition, it demands preparation and adaptability. Below are actionable steps and a free tool that could help:
1. Try the F/MS AI Grant Finder & Application Writer
Finding the perfect EU grant doesn’t have to be overwhelming. Entrepreneurs can use the F/MS EU Grant Finder Tool to discover funding opportunities tailored to their business needs. This platform even drafts your application framework, saving hours and improving your chances of success!
2. Focus Early and Strategically
With VC firms like CRV narrowing their focus to early-stage investments, it’s a golden era for startups equipped to shine at Seed and Series A levels. Validate your problem, define your audience, and create an MVP that investors can’t ignore.
3. Use Startup-Incubation Tools Like the F/MS Startup Game
Start your entrepreneurial journey in the Fe/male Switch Startup Game, which helps founders validate ideas in a game-like environment. Its AI sandbox and skill-building modules replicate real-world startup challenges, offering valuable experience without risking real capital.
4. Secure Solid Legal Agreements
Avoid legal mishaps with tools like an AI-driven Startup Lawyer. Upload term sheets, partnership contracts, and other documents to review potential red flags before making decisions.
Common Mistakes to Avoid When Seeking Funding
Embarking on this journey can be a roller coaster, so keeping certain missteps in mind will save you time and resources:
1. Underestimating Market Validation
Neglecting to properly test and adapt your product for the market can alienate investors. Use tools like PlayPal to validate ideas before pitching to VCs.
2. Ignoring Alternative Funding Options
Many startups focus solely on VC funds, forgetting that grants, accelerators, and crowdfunding platforms can provide significant equity-free capital. Consider tools like the F/MS Grant Finder or joining startup hubs in countries like Malta, where residency programs make it easier to register businesses. Watch this video on Malta’s startup ecosystem to learn more.
3. Overvaluing the Startup
As CRV’s strategy highlights, overly high valuations hinder funding rounds at later stages. Be realistic and maintain transparency with investors.
Deep Insights: Why CRV’s Shift Matters
The key takeaway from CRV's downsizing is that "less can be more." Raising smaller, focused funds frees up resources to pursue high-growth early-stage startups. Startups benefiting from this approach are not only better funded but also receive hands-on mentorship during their formative years.
Furthermore, CRV’s success in securing $750M in under a month underscores the confidence institutional investors still place in venture capital, an encouraging sign for every innovative entrepreneur in 2025.
Learn More about PlayPal, F/MS, and Startup Grants
If you're ready for action:
- Chat with an AI co-founder by visiting PlayPal’s page.
- Find the perfect EU startup grants customized to your needs with the F/MS AI Grant Tool.
Conclusion
CRV’s $750M fund and strategic pivot mark a significant lesson for startups in 2025: Focus matters. VCs are leaning towards startups that exhibit clarity, scalability, and adaptability in their early stages. Founders must leverage the right tools, like PlayPal AI and the AI Grant Finder, to position themselves ahead in this competitive landscape.
Whether you’re a seasoned entrepreneur or just getting started, the insights and tools highlighted in this piece are here to transform game-changing ideas into successful ventures. Will you be the next big startup success story?
FAQ
1. What did CRV announce in 2025 regarding their new fund?
CRV announced raising a $750 million fund, its 20th flagship fund, to focus on early-stage investments in fields like consumer and developer tools. Read the official announcement by CRV
2. How quickly did CRV raise the $750 million fund?
CRV raised the fund in just four weeks, with demand from investors exceeding twice the fund size. Explore CRV’s details on TechCrunch
3. Why is CRV not raising another late-stage fund?
CRV decided against raising another late-stage fund after returning $275 million of its $500 million Select Fund to investors due to overvaluation concerns and a difficult late-stage exit environment. Learn about CRV’s $275M LP return
4. What industries will CRV’s new $750M fund target?
The fund will predominantly back seed and Series A startups in consumer products and developer tools.
5. How does CRV’s new fund size compare to previous funds?
The $750 million fund is significantly smaller than CRV's $1 billion early-stage fund raised in 2022, signaling a strategic focus shift. See CRV's past fund announcement
6. What are some notable companies CRV has backed in earlier rounds?
CRV has invested in high-profile companies like DoorDash, Mercury, and Vercel, leveraging early-stage funding to scale these companies to success. Learn more about Mercury
7. Why did CRV return $275 million to investors in 2024?
CRV returned the capital because it was concerned about high valuations in late-stage startups and the challenges of achieving strong investment returns. Read the details on TechCrunch
8. What lessons can startups learn from CRV’s strategic downsizing?
Startups should focus on demonstrating realistic valuations, building strong MVPs, and securing early-stage funding to thrive in a changing funding landscape.
9. What tools can help startups in 2025 secure funding more effectively?
Entrepreneurs can use tools like the F/MS AI Grant Finder to identify and apply for funding opportunities tailored to their needs.
10. What does CRV's fundraising success indicate about the venture capital market?
CRV’s ability to raise $750 million in such a short period shows continued investor confidence in well-established VC firms, even amid challenging market conditions. Read an analysis on TechCrunch
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch. The Fe/male Switch team is located in several countries, including the Netherlands and Malta.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 3,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
