Investors pour $258M into crypto startups despite $2B market wiped out

Venture capital funding continues to flow to digital asset companies, even as the broader crypto market struggles with heavy losses.

According to data from DeFiLlama, around $258 million was invested in crypto companies during the first week of February, highlighting that investors are still supporting infrastructure and services related to blockchain networks despite an estimated market decline of around $2 trillion.

Decentralized finance projects dominated activity with four transactions, followed by payments startups with three.

Anchorage Digital Raises $100M in Funding Round Led by Tether

The largest raise came from Anchorage Digital, which secured $100 million in strategic funding led by stablecoin issuer Tether.

The federally chartered crypto bank offers custody, trading and cryptocurrency banking services to institutions and plans to use the funding to expand its operational infrastructure as demand from asset managers and businesses increases.

Tether said the investment reflects efforts to align stablecoins with regulated financial systems and deepen ties with institutional partners exploring tokenized payments and settlements.

Blockchain analytics provider TRM Labs raised $70 million in a Series C round led by Blockchain Capital, reaching a valuation of $1 billion.

The company develops software used by exchanges, banks and government agencies to monitor blockchain transactions, detect fraud and track illicit activity.

The new capital will support expansion into new markets and improve investigative tools, highlighting the growing role compliance technology plays as regulators increasingly scrutinize crypto markets.

Meanwhile, Solana-based decentralized exchange aggregator Jupiter has completed a $35 million strategic round backed by ParaFi Capital.

The investment was settled using JupUSD, the project’s stablecoin, with ParaFi purchasing JUP tokens and agreeing to a long-term lockup.

Jupiter also announced that prediction market platform Polymarket will integrate into its ecosystem on Solana, signaling continued development of trading applications even in weak market conditions.

Andreessen Horowitz raises $15 billion to support AI and crypto innovation

Last month, Andreessen Horowitz secured more than $15 billion in new capital, solidifying its position as one of the most powerful venture capital firms in the U.S. technology sector.

The funds span several strategies, including infrastructure, applications, healthcare, growth investments and its “American Dynamism” initiative.

In 2025 alone, the company accounted for more than 18% of total venture capital deployed in the United States.

Co-founder Ben Horowitz said the fundraising reflects the company’s core philosophy that venture capital exists to give people the opportunity to start businesses and create value.

He presented startups as engines of social mobility, arguing that innovation ecosystems work best when individuals are free to pursue success and experiment.

Horowitz also linked the company’s mission to broader geopolitical competition. He warned that U.S. leadership in technology is not guaranteed and could weaken if the country falls behind in fundamental innovations.

According to the company, technological leadership leads to economic, military and cultural consequences on a global scale.

The new capital will focus heavily on artificial intelligence and cryptography, which the company sees as defining the technologies of the next era.

The article Investors pour $258M into crypto startups despite $2B market wiped out appeared first on Cryptonews.

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