Crypto startups raised nearly $5 billion from venture investors in the first-quarter of 2026, DefiLlama data shows.
That’s a 16% decrease year-on-year when compared to the first three months of 2025 when the market saw closer to $6 billion in funding amid the crypto industry’s euphoria after Donald Trump took office.
Yet investment momentum is not lost — the fundraising data highlights a rapidly evolving startup ecosystem.
The prediction market sector emerged as the dominant force, securing over $1.7 billion in capital. This was followed by payments at $735 million and trading infrastructure at $423 million, underscoring a shift from speculative crypto token bets to real-world tools and institutional utility.
And more and more marquee investors — not just crypto VCs — are piling in. They include the likes of Sequoia Capital, Founders Fund, Bain Capital, and Alibaba Group.
Here are the top 10 raises in the first-quarter this year.
CHART HERE
Kalshi, the CFTC-regulated event derivatives exchange, raised $1 billion at a $22 billion valuation, reinforcing its leadership in regulated prediction markets, according to people familiar with the situation speaking with Bloomberg and the Wall Street Journal.
Investment firm Coatue Management led the raise, according to the publications’ sources.
Kalshi has not yet officially confirmed the deal.
This capital injection underscores the growing institutional appetite for prediction platforms.
Polymarket secured $600 million, maintaining its dominance in decentralised betting markets.
Intercontinental Exchange, the fintech firm, said it had poured the fresh capital into the prediction market platform. and that it may acquire up to $40 million of Polymarket securities from existing holders.
Rain raised $250 million in a Series C round at nearly $2 billion valuation.
Iconiq Capital led the raise into the stablecoin payments infrastructure provider. Other investors include Sapphire Ventures, Dragonfly Capital, Bessemer Venture Partners and Galaxy Digital.
The platform combines card issuance with stablecoin payment rails, enabling crypto-native organisations to transact with the traditional economy.
In January, crypto custodian BitGo raised more than $213 million in an initial public offering at over $2 billion valuation.
The firm listed on the New York Stock Exchange, pricing shares at $18, with strong institutional demand.
Flying Tulip raised $206 million via a public token sale at a $1 billion fully diluted valuation, with development led by decentralised finance architect Andre Cronje. The sale funded a protocol integrating trading, lending and insurance functions.
