Venture capitalists invested $883 million into crypto startups in February 2026, despite a 13% decline from the previous year amid ongoing market challenges, according to data from DefiLlama. Investors are now more cautious, focusing on startups that demonstrate revenue, user traction, and the ability to withstand bear market conditions, marking a shift from the previous “spray-and-pray” approach. Key areas of interest this year include stablecoins, artificial intelligence agents, and institutional tools for compliance and treasury management, reflecting a strategic pivot towards sustainable investment opportunities even in a downturn, as such environments can yield strong performers.
Flying Tulip raises $206M for DeFi financial stack amid cautious VC investment
