Author: DLNews

Translated by: Deep Wave TechFlow

Original link:https://www.dlnews.com/articles/markets/crypto-startups-raise-883m-in-february/

Deep Wave Insight: Even in a bear market, VCs are still funding, but the standards have changed— the era of securing funding just by storytelling and PowerPoint presentations is over. This article clearly presents the new logic of the crypto primary market in 2026 using data from DefiLlama and direct quotes from top VCs: stablecoins, AI Agents, and institutional compliance tools are the three major hot spots right now, and the re-emergence of names like Andre Cronje and Tether is also worth noting.

According to DefiLlama data, despite the market downturn, venture capital firms injected $883 million into crypto startups in February.

This figure represents a 13% decrease compared to the same period last year— last year, startups raised over $1 billion during the crypto bull market.

Now, venture capital firms are still issuing checks but with increasing caution.

"Last year, funding could be secured with just a narrative and a PowerPoint presentation," said Andrei Grachev, managing partner at crypto VC firm DWF Labs, to DL News.

"This year, investors want revenue, users, and reasons to believe the product can survive the bear market cycle," he said, "the era of casting wide nets and relying on luck is over."

Grachev noted that bear markets "always bring opportunities," and some of DWF Labs' best-performing investments were made during downturns.

He pointed out three core themes driving venture capital in 2026: stablecoins and payment infrastructure, AI Agents, and institutional tools for compliance and fund management.

"Not sexy, but this is the pipeline that $500 billion of institutional capital must flow through before touching any tokens."

Here are the largest financings in February.

Flying Tulip, $206 million

Founded by DeFi architect Andre Cronje, Flying Tulip raised $206 million through a token sale this month to build what it describes as an integrated financial technology stack.

The platform integrates spot trading, lending, and perpetual contract derivatives with its native stablecoin ftUSD, positioning itself as a vertically integrated liquidity hub.

A core innovation is the ftPUT structure, granting token holders permanent redemption rights to anchor the bottom value of FT tokens.

Capital is allocated to relatively conservative yield sources like Aave and Lido, aiming to generate sustainable native returns.

This financing indicates that the DeFi model, which combines structured downside protection with exchange-grade financial instruments, is strongly favored by investors.

Whop, $200 million

The digital goods social commerce market Whop received a $200 million strategic investment from stablecoin giant Tether, reaching a valuation of $1.6 billion. The platform connects thousands of creators with over 18 million users, facilitating the sale of software, online courses, and subscription communities.

The core of this deal lies in integrating Tether's Wallet Development Kit for self-custodied settlements for USDT and the newly launched USAT stablecoin.

Whop stated that by reducing reliance on traditional banking rails, the company aims to accelerate payments in the global creator economy, especially in emerging markets.

This financing will support expansion in Europe and Asia and provide funding for AI-driven business tools.

Anchorage Digital, $100 million

Anchorage Digital, the first digital asset bank in the U.S. to receive federal regulatory approval, secured a $100 million strategic equity investment from Tether, boosting its valuation to $4.2 billion.

This investment deepens the cooperation between the two parties—under this cooperation framework, Anchorage acts as the regulated issuer of Tether's compliant dollar stablecoin USAT.

Anchorage provides institutional-grade custody, staking, governance, and settlement infrastructure, serving as a bridge between traditional capital markets and blockchain-native finance.