TLDR
Bitcoin-native startup funding deals increased 27.5% in 2024 despite total capital falling 22.1%
Pre-seed transactions grew by 50% while Series A deals rose 60% year-over-year
Total funding for Bitcoin-native startups reached $234 million in 2024
Bitcoin startups represent only 2.34% of crypto venture deals despite Bitcoin holding 62% market dominance
Pre-seed Bitcoin-native transactions have grown 767% since 2021
Bitcoin-native startups are seeing increased investor interest at the early stages, even as total capital allocation to the sector declines. According to a new report by Trammell Venture Partners (TVP), the number of unique Bitcoin-native companies receiving funding rose 27.5% in 2024 compared to the previous year.
The report shows that individual funding transactions increased by 31.8% during the same period. However, the total capital raised across these deals dropped by 22.1%, totaling $234 million for the year.
TVP defines “Bitcoin-native” companies as those founded on the principle that Bitcoin serves as a foundational global monetary asset. These startups build infrastructure, applications, and services that leverage the base Bitcoin network or related layers.
Shift Toward Earlier Funding Stages
The growth in Bitcoin startup funding is primarily driven by increased activity in early-stage rounds. Pre-seed transactions grew by 50%, while seed-stage deals increased by 30% year-over-year.
Series A transactions saw an even more dramatic rise of 60% compared to 2023. This trend indicates growing investor confidence in backing Bitcoin-native companies from their earliest development phases.
The contrast between more deals but less total capital suggests a market shift. Venture firms appear to be spreading investments across more early-stage companies rather than making large, concentrated bets.
Median round sizes have remained stable across funding stages. The total capital raised dropped from $301 million in 2023 to $234 million in 2024.
Pre-seed Bitcoin-native transactions have shown remarkable growth. They increased more than sevenfold over the four years from 2021 to 2024, according to TVP’s data.
Small But Growing Segment
Bitcoin-native startups still represent a small portion of total crypto venture capital funding. They accounted for just 5.98% of overall crypto venture capital invested in 2024.
These startups made up only 2.34% of all venture-backed crypto deal counts last year. This is despite Bitcoin’s massive 62% share of the total cryptocurrency market capitalization.
The disparity highlights a gap between Bitcoin’s market dominance and its representation in startup investment flows. However, TVP argues that the Bitcoin-native sector is entering a breakout phase.
The report notes four consecutive years of growth across key investment metrics. Bitcoin-aligned entrepreneurs are increasingly attracting interest from major investors.
Prominent investment firms including Founders Fund, Ribbit Capital, Accomplice, Valor Equity Partners, Boost VC, and Y Combinator participated in Bitcoin-native deals in 2024.
Christopher Calicott, managing director at TVP, explained the growing interest: “Many entrepreneurs across crypto are revisiting the Bitcoin stack as the long-term place to build their companies.”
He added, “It makes perfect sense. The objectively most secure, reliable, and decentralized blockchain is the obvious platform of choice.”
The Austin-based venture capital firm specializes in early-stage Bitcoin startup investing. TVP’s portfolio includes companies like Voltage, which specializes in Lightning Network infrastructure, and Fedi, a Bitcoin super-app.
TVP’s research indicates that Bitcoin startups raised approximately $1.2 billion from 2021 through 2024. This growth comes despite the overall contraction in venture capital allocations to crypto over the past two years.
Calicott believes this trend will continue, stating: “As this wave of early-stage companies finds traction, increasing amounts of crypto value will accrue to the Bitcoin stack, a core thesis for TVP.”
The Bitcoin-native segment has demonstrated resilience through consistent growth in startup formation and early-stage capital access. While total funding has decreased, the increasing number of deals signals continued investor interest in this category.
