Weekly VC & Startup Funding Highlights Feb 28, 2026

Posted on February 28, 2026 at 04:49 PM

🚀 Weekly VC & Startup Funding Highlights Feb 28, 2026

Startup Name Sector Round Investors Valuation / $ Raised Notes
Rowspace AI / FinTech Seed + Series A Led by Sequoia, co-lead Emergence Capital, + Stripe, Conviction, Basis Set, Twine $50M total Launched publicly with $50M. Platform uses AI to unify proprietary financial data for institutional decisioning. Represents domain-specific AI vs. generic models trend. (Yahoo Finance)
Harper AI / InsurTech Combined Seed & Series A Emergence Capital, Y Combinator, Peak XV, Antler, 10X Founders, Fellows Fund, Outset Capital $47M Rapid growth in commercial AI-powered insurance brokerage; notable as largest disclosed Series A raised by a Black founder. (FinTech Global)
Astelia Cybersecurity Seed / Series A Index Ventures, Team8, Holly Ventures $35M Founded by former Israel National Red Team leaders; strong enterprise traction in AI-powered vulnerability management. (FinTech Global)
Allica Bank FinTech / Banking Series D Ventura Capital + GLG, Sona AM, TCV, Blue Owl $155M UK digital SME bank scaling with near-unicorn valuation; strong financial infrastructure investor interest. (FinTech Global)
Basis AI / Accounting Series B Accel, GV, Khosla Ventures, NFDG, Better Tomorrow Ventures, BoxGroup, Avid Ventures $100M at ~$1.15B Achieved unicorn status supporting AI agents in accounting workflows with early adoption ~30% of top accounting firms. (AI Funding Tracker)
Gambit Security AI / CyberResilience Seed + Series A Spark Capital, Kleiner Perkins, Cyberstarts $61M Emerged from stealth to tackle ransomware resilience & enterprise security automation. (FinTech Global)
Xflow FinTech / Payments Series A General Catalyst, Stripe, Lightspeed, PayPal Ventures, Moore Capital $16.6M at $85M Valuation India’s key cross-border payments fintech with strategic global investors. (FinTech Global)

1) AI-Infused Vertical SaaS Gains Traction

  • Investors like Sequoia and Emergence are backing startups like Rowspace that blend domain-specific AI with deep workflows (finance, insurance). This shows a pivot from generic LLM agents to specialised intelligence systems that embed in industry value chains. (Yahoo Finance)

2) FinTech Structuring & Compliance Is Growing

  • FinTech rounds (Allica Bank, Xflow) reflect sustained investor interest in financial infrastructure, SME banking, and cross-border payments — sectors benefiting from regulation easing and global transaction growth. (FinTech Global)

3) Cybersecurity & Enterprise AI Are Material Themes

  • Astelia and Gambit Security funding rounds signal AI-driven cybersecurity remains a priority for VCs amid rising attack surface complexity.

4) Diversity & Founder Milestones

  • Harper’s funding highlight showcases broader inclusion trends as firms like Emergence and YC support historically underrepresented founders.

📈 Market Potential

  • Vertical AI adoption in regulated industries (finance, insurance) could outpace generic AI apps as tailored models unlock enterprise decision value.
  • Cyber AI startups are poised for higher valuations as compliance demands and threat landscapes accelerate spend.
  • Cross-border fintech sees growth in Asia, MENA, and EU markets due to digitisation and regulatory support.

⚠️ Risks to Watch

  • Valuation inflation in AI startups (e.g., dual-tier pricing tactics seen in broader market) could cause volatility and employee compensation issues. (The Wall Street Journal)
  • Macro funding tightening may compress rounds outside top feeder hubs (US/UK), making developer capital more concentrated.