Bitcoin startups see 767% funding growth in four years

Austin-based venture capital firm Trammell Venture Partners (TVP) has revealed a 767% surge in pre-seed funding rounds for Bitcoin-native (CRYPTO:BTC) startups since 2021, according to its third annual report.

The data highlights a sustained trend of growth in early-stage Bitcoin ventures, despite broader challenges in the cryptocurrency and venture capital markets.

Between 2021 and 2024, Bitcoin-native startups raised approximately $1.2 billion in funding.

TVP defines Bitcoin-native companies as those built on the principle that Bitcoin is the global monetary asset of the future.

Examples include Voltage, which focuses on Lightning Network infrastructure, and Fedi, a Bitcoin superapp integrating chat and financial features.

Christopher Calicott, managing director at TVP, attributed the growth to Bitcoin’s reliability as a decentralised platform.

“Many entrepreneurs across crypto are revisiting the Bitcoin stack as the long-term place to build their companies,” Calicott said.

He emphasised that Bitcoin’s secure and decentralised nature makes it an attractive foundation for innovation.

While pre-seed transactions rose by 50% year-over-year in 2024, total funding dipped by 22% to $234 million—the lowest annual total during the four-year period.

This decline reflects broader macroeconomic uncertainties, including inflation and rising interest rates, which have impacted venture capital investments across sectors.

Interestingly, despite Bitcoin’s dominance of over 63% of the total cryptocurrency market capitalisation, it only attracted 2.34% of all venture capital investments in the crypto space.

Calicott views this as an opportunity rather than a limitation, suggesting that as more early-stage companies gain traction, greater value will accrue to the Bitcoin ecosystem.

The report also noted a significant increase in Series A transactions, which jumped by 60% in 2024.

At the time of reporting, the Bitcoin (BTC) price was $82,693.99.