Recent insights from Trammell Venture Partners (TVP), a notable venture capital firm, underscore the steady rise in Bitcoin-focused startups, with early-stage companies securing nearly $1.2 billion in funding from 2021 to 2024. This impressive growth occurred despite the overall slowdown in the crypto and tech venture capital markets during 2023 and 2024. Notably, startups in the Bitcoin sphere, especially those at the Pre-Seed level, showed remarkable resilience.
According to TVP’s 2024 Bitcoin-Native Venture Capital Landscape Research Brief, transaction volumes for Bitcoin Pre-Seed startups skyrocketed by 767% compared to 2021, suggesting a robust and evolving venture category. In 2024 alone, the number of Pre-Seed transactions surged by 50% compared to the previous year, while the total deal count for Bitcoin-native startups increased by 31.8%.
“While data from one or two years might be seen as an outlier, the consistent growth over four years underscores a lasting trend in Bitcoin startup formation,” remarked Christopher Calicott, TVP’s Managing Director.
Bitcoin-native companies, as defined by TVP, are those whose product success is closely tied to Bitcoin’s prosperity and utilize the Bitcoin protocol stack at their core.
Even though venture capital investment across the crypto sector declined, Bitcoin-specific investments defied expectations. In 2024, the share of Bitcoin-native deals increased, drawing interest from major institutional venture capital firms such as Draper Associates, Founders Fund, Y Combinator, and Ribbit Capital.
In its report, TVP deliberately excluded mining operations and late-stage exceptional deals, focusing instead on early-stage software and infrastructure startups. The research spans activity from 2021 through 2024 and aims to guide investors looking for long-term opportunities in Bitcoin’s startup ecosystem.
For those interested in delving deeper, the complete report is accessible for download on the official TVP website.
