Bitcoin Startups Raised Nearly $1.2 Billion

Trammell Venture Partners (TVP) has recently released new research showcasing the continued growth in bitcoin native startup activity. According to their findings, early-stage companies in the bitcoin space raised nearly $1.2 billion between 2021 and 2024. This growth is particularly noteworthy as it occurred during a time of downturn in the broader crypto and tech venture capital markets in 2023 and 2024.

The 2024 edition of TVP’s Bitcoin-Native Venture Capital Landscape Research Brief reveals some interesting trends in the industry. One standout statistic is the 767% increase in Bitcoin Pre-Seed startup transaction volume compared to 2021. This significant rise indicates a maturing and sustained venture category within the bitcoin ecosystem. In 2024 alone, Pre-Seed transaction counts saw a 50% year-over-year increase, while the overall deal count for Bitcoin-native startups grew by 31.8%.

Christopher Calicott, Managing Director at TVP, commented on the data, stating that “with four consecutive years of year-over-year growth at the earliest stage of Bitcoin startup formation, the data now confirm a sustained, long-term venture category trend.”

TVP defines a Bitcoin-native company as one that aligns its product success with the success of Bitcoin and leverages the Bitcoin protocol stack in its core operations. Despite an overall decline in venture capital dollars in the crypto sector, investments in Bitcoin-specific startups have been on the rise. In 2024, Bitcoin-native deals made up a growing share of venture activity, with participation from institutional VC firms like Draper Associates, Founders Fund, Y Combinator, and Ribbit Capital.

It is important to note that TVP’s report focused on early-stage software and infrastructure startups, excluding mining operations and late-stage outlier deals. The data set spans from 2021 to 2024 and aims to provide clarity to investors looking to gain exposure to Bitcoin’s startup ecosystem.

For those interested in delving deeper into the research, the full report is available for download on TVP’s official website.

Overall, the findings from TVP’s research highlight the resilience and growth of the Bitcoin-native startup space, despite broader market trends. This sector continues to show promise for investors seeking opportunities within the evolving landscape of cryptocurrency and blockchain technology.