Navigating the Crypto Winter: Startup Opportunities from the Perspective of US VCs

§ 01 Executive Snapshot

• What: Alliance reports a doubling of early-stage applications in the crypto sector despite a bearish market.
• Who: Key players include Alliance co-founders Imran Khan and Qiao Wang, along with VC firms like a16z and Paradigm.
• Why it matters: This trend indicates a shift towards pragmatic entrepreneurship in the crypto space, focusing on application innovation rather than speculative growth.

§ 02 Key Developments

• On June 17, 2026, Imran Khan stated that application volume for the latest cohort doubled compared to the previous quarter, marking the strongest cycle in Alliance's 6.5-year history.
• The focus of applications has shifted towards sectors like stablecoins, AI, agentic payments, and robotics, moving from pure infrastructure development.
• Notable alumni projects such as Guardrail and Freeport Markets are experiencing significant growth, with Freeport achieving 50% month-over-month growth.

§ 03 Strategic Context

• Historically, startup activity in crypto has been highly correlated with market conditions, where bull markets attract more teams and capital, while bear markets see a decline.
• The current environment is characterized by a maturation of infrastructure, allowing for more innovation in real-world applications rather than speculative projects.

§ 04 Strategic Implications

• The immediate implication is a potential increase in innovative applications in the crypto space, focusing on real-world use cases and validated infrastructure.
• Long-term, this trend could lead to a more sustainable growth phase for the crypto industry, shifting the focus from token issuance to application development.

§ 05 Risks & Constraints

• Potential regulatory hurdles remain a concern as the crypto industry navigates a changing landscape.
• Increased competition from traditional finance and other tech sectors could hinder the growth of new crypto startups.

§ 06 Watchlist / Forward Signals

• The goal is to triple application volume over the next year, positioning Alliance as a key hub for crypto founders in New York.
• Observers should watch for developments in stablecoin regulation and AI infrastructure as indicators of market evolution and startup success.