- Crypto startup teams need to do more, VCs say.
- That’s because the AI boom presents other opportunities for investors.
Venture capitalists are warning that the artificial intelligence boom is sucking money away from crypto startups.
Charles Chong, vice president of strategy at crypto asset advisory firm BlockSpaceForce, said: DL News Investors now have a “real alternative that allows them to see returns faster.”
“The crypto team needs to work harder,” he said. “This is forcing founders to become more precise about defensibility, monetization, and how their models will hold up in a depressed market.”
Chong’s words of warning come as crypto startups raised $128 million in the first week of March, according to DefiLlama data. This brings the total amount raised to date in 2026 to nearly $2.5 billion.
Still, this week’s investors include Peter Thiel’s Founders Fund, Ripple, Y Combinator, Wintermute, and Sequoia Capital, all of which are getting into payments, trading, and decentralized finance infrastructure.
“Investors are still writing checks, but only to teams that can clearly articulate the value capture and opportunity cost, especially in a world where AI offers very different risk-reward profiles,” Chong said.
This week’s top three raises are:
ARQ, $70 million
Latin American fintech company ARQ, formerly known as DolarApp, secured a $70 million Series B round this week, the largest venture round in the space.
The financing was led by Sequoia Capital and Founders Fund. This appears to show the institution’s confidence as the company moves from a cross-border dollar transfer service to a broader digital banking platform.
ARQ, which serves approximately 2 million users and handles more than $10 billion in annual trading volume, plans to invest in a complete brand overhaul and the rollout of new products, including wealth management services and high-yield local currency accounts.
The move highlights the growing demand for financial infrastructure linked to stablecoins across Latin America as consumers and businesses seek protection from persistent currency fluctuations and limited access to traditional banking services.
Crossover market, $31 million
Crossover Markets raises $31 million in Series B funding round Tradeweb Markets led the funding, valuing the company at approximately $200 million. Additional investors include Ripple and crypto market maker Wintermute.
The company operates CROSSx, an execution-only electronic communications network built for institutional investors to trade digital assets.
Unlike many crypto exchanges, the startup separates trade execution from custody and market-making functions, a structure it says is designed to minimize conflicts of interest and appeal to traditional financial firms.
QFEX, $9.5 million
QFEX, a hybrid derivatives exchange focused on tokenized real-world assets, has raised $9.5 million in seed funding led by Yuri Sagalov of General Catalyst, with backing from Y Combinator and investor Paul Graham.
Founded by a Cambridge mathematics graduate and former high-frequency trader at Citadel and Tower Research Capital, the platform allows investors to trade stocks, commodities and foreign currencies through perpetual derivatives that operate 24 hours a day.
You’re reading the latest installment of The Weekly Raise, a column covering fundraising deals across the crypto and DeFi space powered by DefiLlama.
Lance Datukoruo is DL News’ Europe-based market correspondent. Any tips? send him an email lance@dlnews.com.
