While the broader crypto venture space faced a slowdown, early-stage investment in Bitcoin-native startups surged in 2024, according to a new research brief from Trammell Venture Partners (TVP). The report highlights a notable shift: Bitcoin-focused startups are gaining ground, carving out a larger share of the venture capital pie.
Bitcoin Startups Defy the Downtrend
Despite a 22.1% drop in total crypto funding in 2024, the number of Bitcoin-native startup deals jumped nearly 32%, with pre-seed activity alone increasing by 50%.
TVP defines Bitcoin-native companies as those rooted in the Bitcoin ecosystem, building products and services that are directly aligned with Bitcoin’s role as both an asset and protocol—not simply adjacent blockchain technologies.
Unlike broader crypto ventures that diversify across multiple chains, Bitcoin startups are laser-focused, often building on Bitcoin’s base layer or Lightning Network.
Early-Stage Growth Hits New Highs
The growth trend isn’t limited to one stage. According to TVP:
- Pre-seed deals in 2024 were more than 7x higher than in 2021.
- Seed rounds rose 30% year-over-year.
- Series A deals climbed 60%, showing rising confidence in maturing Bitcoin-based companies.
While overall capital invested dipped, the increase in deal count and startup formation shows that innovation in the Bitcoin space is alive and well. With four consecutive years of growth, TVP believes Bitcoin-native ventures are poised to take a larger share of future crypto funding.
Big-Name Investors Are Taking Notice
Fueling this momentum is support from major venture players. In 2024, firms like Founders Fund, Ribbit Capital, Y Combinator, and Valor Equity Partners all backed Bitcoin-focused companies.
This growing institutional interest signals a maturing ecosystem—one that extends beyond Bitcoin mining and hodling, and into real-world applications powered by Bitcoin’s protocol layers.
Yet, despite Bitcoin representing more than 50% of crypto’s total market cap, only 2.3% of venture funding flowed into Bitcoin-native startups in 2024—a gap that many investors now see as a ripe opportunity.
A Simpler, More Focused Path for Crypto Innovation
Bitcoin-native companies often benefit from clearer business models, reduced complexity, and more targeted product development. With growing investor trust and increased startup activity, they’re laying the foundation for a new wave of crypto innovation—rooted in Bitcoin, but geared toward broader adoption.
