- AI companies are outperforming cryptocurrencies when it comes to raising capital from VCs.
- Still, a cryptocurrency startup raised $37 million this week.
Artificial intelligence companies are leaving crypto startups alone, founders warn.
said Paul Brody, former EY Global Head of Blockchain turned CEO of Nightfall Networks. DL News This means it’s a bad time for crypto teams looking to raise money.
The reason for this is that AI companies are growing rapidly and expectations for new startups are rapidly increasing.
“What used to be considered strong early performance, about $2 million in first-year revenue, is no longer enough,” Brody said. “Currently, investors are expecting close to $4 million.”
In other words, rising expectations are making it harder for crypto startups to compete for funding.
Still, Brody thinks there’s room for optimism.
“The only silver lining is that at least some venture capital firms are sitting back and saying, ‘Hey, we’re too committed to AI,'” he said. “Maybe we need a little something else in our portfolio.”
And this week’s fundraising data backs him up. Venture investors pumped nearly $37 million into crypto startups, DefiLlama data show.
This week’s top three raises are:
Bet Hog, $10 million
Crypto casino BetHog based in Edinburgh raised The Series A round was $10 million, bringing total funding to date to $16 million.
Will Ventures and RockawayX led the hike. Bullpen Capital, 6th Man Ventures, and Advancit Capital also supported the round. The company was founded by Nigel Eccles and Rob Jones, the team behind FanDuel.
The company said the funding will support Sentient Studios, a new business that allows casinos to use AI-powered virtual dealers in place of human staff.
Grouper, $8 million
Hata is a Malaysian cryptocurrency exchange. raised 8 million dollars. Bybit led the round with support from global family offices. This follows a $4.2 million seed round in 2025, also backed by Bybit.
grouper say The company holds licenses from both the Malaysian Securities Commission and the Labuan Financial Services Authority.
The company says the platform has grown rapidly and now has over 200,000 users.
Caio, $8 million
KAIO based in Abu Dhabi raised 8 million dollars in one round.
Stablecoin giant Tether led the raise with support from Laser Digital, Systemic Ventures, and Further Ventures. Total funding currently stands at $19 million.
KAIO builds blockchain infrastructure that enables regulated investment fund issuance and on-chain trading. Its platform provides both retail and institutional investors with access to leading traditional funds such as BlackRock and Hamilton Lane.
You’re reading the latest installment of The Weekly Raise, a column covering fundraising deals across the cryptocurrency and DeFi space powered by DefiLlama.
Lance Datukoruo is DL News’ Europe-based market correspondent. Any tips? send him an email lance@dlnews.com.
