Why crypto startups struggle to get VC cash this cycle

The noose is tightening for crypto startups seeking to raise venture capital, according to Sami Start, founder of Transak, a crypto infrastructure provider.

“It is definitely harder to raise than it was last cycle,” Start told DL News.

“Funds are making fewer bets, and they’re being much more selective about where they take exposure,” he said.

Amid the $2 trillion industry drawdown, capital is increasingly being directed towards companies focused on stablecoin infrastructure, payments and financial connectivity, where demand is seen as more closely linked to real economic activity, he said.

“There’s a lot less appetite for broad narratives and a lot more focus on whether a company has real usage, a credible regulatory setup, and a product that fits into actual financial flows.”

Still, crypto startups raised $197 million this week, DefiLlama data shows.

Here are the top three raises this week.

Startale Labs, $50 million

Startale Labs, the Singapore-based developer behind the Astar Network, has raised $63 million in a Series A round.

SBI Holdings led the raise. The backing of the financial services company underscores how Asian financial institutions and the blockchain sector are growing more aligned.

The company is positioning itself as middleware for enterprises entering crypto. It says the fresh capital injection is earmarked to advance its Astar zkEVM and Swanky Suite products.

For SBI, the investment reflects a longer-term wager on multi-chain infrastructure operating within a regulated global framework.

Ledger, $50 million

France-based hardware wallet maker Ledger has secured a $50 million funding extension. The raise reinforces its position as a leading provider of self-custody solutions.

The raise via secondary share sale highlights continued demand for secure asset storage as institutional participation grows.

Proceeds are expected to support expansion of Ledger Enterprise and further rollout of its Stax device.

Despite competition from software-based MPC wallets, Ledger’s funding momentum suggests hardware custody remains the preferred model for high-value and institutional assets.

The raise comes as Ledger co-founder Éric Larchevêque is advocating for crypto workers’ right to wear guns in France. His co-founder, David Balland, was the victim of a brutal kidnapping in 2025.

Tazapay, $36 million

Singapore-based Tazapay has raised $36 million in a Series B round.

Stablecoin issuer Circle’s venture capital arm led the raise. Circle’s backing points to a strategic push to expand the use of USDC as a settlement asset in emerging markets.

Tazapay’s platform offers fiat-to-crypto rails across more than 70 markets, enabling local collection and payouts supported by integrated stablecoin liquidity.

By bypassing legacy systems such as SWIFT, Tazapay is targeting inefficiencies in global B2B payments.

You’re reading the latest instalment of The Weekly Raise, our column covering fundraising deals across the crypto and DeFi spaces, powered by DefiLlama.

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at lance@dlnews.com.