$883 million in crypto fundraising in February: The era of VCs casting wide nets is over—revenue is now required to secure funding
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$883 million in crypto fundraising in February: The era of VCs casting wide nets is over—revenue is now required to secure funding
VCs are still making investments during the bear market, but their criteria have changed—the era when startups could raise funds solely on narratives and PowerPoint decks is over.
Navigating Web3 tides with focused insightsAuthor: DLNews
Translation: TechFlow
Original link: https://www.dlnews.com/articles/markets/crypto-startups-raise-883m-in-february/
TechFlow Insight: Venture capitalists are still writing checks during this bear market—but the criteria have changed. The era in which startups could raise funds solely on narrative and PowerPoint decks is over. This article, drawing on DefiLlama data and direct quotes from frontline VCs, clearly outlines the new logic governing the 2026 crypto primary market: stablecoins, AI agents, and institutional compliance tools are today’s three hottest themes—and the reemergence of names like Andre Cronje and Tether is also worth noting.
According to DefiLlama data, despite a broader market downturn, venture capital firms injected $883 million into crypto startups in February.
This figure represents a 13% decline year-on-year—last year, startups raised over $1 billion during the crypto bull market.
Venture capital firms are still deploying capital—but with increasing caution.
“Last year, you could raise money on a narrative and a PowerPoint deck,” said Andrei Grachev, Managing Partner at crypto VC firm DWF Labs, in an interview with DL News.
“This year, investors want revenue, users, and compelling reasons to believe the product can survive the bear market cycle,” he added. “The era of casting a wide net and hoping for luck is over.”
Grachev noted that bear markets “always bring opportunity,” and some of DWF Labs’ strongest investments were made precisely during downturns.
He identified three core themes driving venture investment in 2026: stablecoin and payment infrastructure, AI agents, and institutional tools for compliance and treasury management.
“It’s not glamorous—but it’s the pipeline through which the next $500 billion in institutional capital must flow before touching any token.”
Below are the largest funding rounds of February.
Flying Tulip – $206 million
Flying Tulip, founded by DeFi veteran architect Andre Cronje, raised $206 million this month via a token sale to build what it describes as an integrated financial technology stack.
The platform integrates spot trading, lending, and perpetual derivatives with its native stablecoin, ftUSD, positioning itself as a vertically integrated liquidity hub.
A key innovation is the ftPUT structure, granting token holders perpetual redemption rights to anchor the floor value of the FT token.
Capital is allocated to relatively conservative yield-generating venues such as Aave and Lido, aiming to generate sustainable native returns.
This fundraising signals strong investor appetite for DeFi models that combine structural downside protection with exchange-grade financial instruments.
Whop – $200 million
Whop, a social commerce marketplace for digital goods, secured a $200 million strategic investment from stablecoin giant Tether, valuing the company at $1.6 billion. The platform connects thousands of creators with over 18 million users, facilitating sales of software, online courses, and subscription-based communities.
The centerpiece of this deal is the integration of Tether’s Wallet Development Kit (WDK) to enable self-custodial settlement using USDT and Tether’s newly launched USAT stablecoin.
Whop stated that by reducing reliance on traditional banking rails, the company aims to accelerate payments within the global creator economy—especially in emerging markets.
This funding will support expansion across Europe and Asia, as well as development of AI-powered business tools.
Anchorage Digital – $100 million
Anchorage Digital—the first U.S. digital asset bank to obtain federal regulatory approval—received a $100 million strategic equity investment from Tether, lifting its valuation to $4.2 billion.
This investment deepens the two parties’ collaboration, under which Anchorage serves as the regulated issuer for Tether’s compliant U.S. dollar-backed stablecoin, USAT.
Anchorage provides institutional-grade custody, staking, governance, and settlement infrastructure, acting as a bridge between traditional capital markets and blockchain-native finance.
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