Crypto venture capital funding increased by 71% in September as Polymarket hits $21 billion valuation after substantial investment.
The latest report from RootData highlights a significant surge in crypto venture capital (VC) funding for September 2026, which rose more than 71% month-over-month. This increase comes amidst evolving market dynamics and noteworthy investments, including a remarkable funding round for the prediction-market platform Polymarket, which reached a valuation of $21 billion.
In total, there were 61 publicly disclosed crypto VC deals in September 2026. This figure represents a slight decline of 1.6% from the 62 deals recorded in August 2026, and a more substantial drop of 35.1% compared to the 94 deals in September 2025.
Despite the reduction in the number of deals, the total disclosed crypto VC funding in September soared to approximately $1.269 billion. This marked an impressive increase of 71.1%, compared to the $742 million reported in August 2026. However, it is important to note that this is a staggering decline of 79.2% from the $6.096 billion observed in September 2025.
Investment activity in September varied by sectors within the crypto space. Here's how the funding was distributed by category:
This sector analysis reveals a diverse set of focus areas for investors as they navigate the complexities of the crypto landscape.
Among the major funding rounds reported in September, Polymarket stands out. The prediction-market platform secured $300 million in a new round led by 1789 Capital—a firm where Donald Trump Jr. serves as a partner. This recent round has propelled Polymarket's post-money valuation to approximately $21 billion, reflecting a significant increase from the previous valuation of around $15 billion.
In addition to Polymarket, several other noteworthy investments occurred in September:
Félix, a WhatsApp remittance platform catering to Latin American immigrants in the U.S., raised $200 million in a Series B round. The investment will enhance its stablecoin-settled cross-border remittance capabilities, expanding into lending and savings offerings.
Jeeves, a stablecoin banking platform aimed at businesses, secured $110 million in a Series C round led by CoinFund. The funds will be utilized for developing stablecoin wallet infrastructure, which currently handles a significant portion of its international payment settlements in stablecoins like USDC.
Nasdaq Ventures also made headlines with a $100 million strategic investment in Payward, the parent company of cryptocurrency exchange Kraken, valuing it at $21 billion. This collaboration aims to enable Kraken to distribute tokenized stock offerings on its platform, amplifying its offerings significantly.
The crypto ecosystem saw various other significant developments during September. MoonPay announced its acquisition of North Capital, a private markets infrastructure platform, in an all-stock deal valued at over $60 million. This acquisition is expected to facilitate regulatory compliance and bolster MoonPay's offerings related to real-world assets.
Blockchain market-data provider Kaiko raised $57 million in a new funding round led by S&P Global. This funding will enhance its market data capabilities and bolster its digital-asset indices in collaboration with S&P Global.
Meanwhile, USD.AI secured a $40 million revolving stablecoin debt facility from asset manager K3 Capital, while stablecoin infrastructure company HIFI announced a $37 million Series A round aimed at expanding its services, including stablecoin payments and card issuance.
Lastly, cross-border stablecoin payments infrastructure company Latitude disclosed a $35 million Series A that aims to connect stablecoin settlements to local bank accounts to facilitate smoother fiat transactions.
The increased venture capital funding in September 2026 can be seen as a positive indicator for the crypto industry, showing investor confidence despite a challenging market landscape. The notable successes of platforms like Polymarket underscore the potential for growth and innovation within the sector, particularly in prediction markets and decentralized finance.
As regulatory frameworks continue to evolve and institutions embrace blockchain technology, the landscape may undergo significant transformation. With a diverse range of sectors attracting investments, the crypto ecosystem appears poised for continued evolution as both startups and established companies alike explore new opportunities.
The future of crypto venture capital looks promising as more players enter the market. This surge in funding may lead to new technological advancements and further integration of digital assets into mainstream finance, ultimately contributing to an increasingly sophisticated and robust blockchain ecosystem.