In 2024, the number of Bitcoin-native startups receiving venture capital investment increased, according to a report by Trammell Venture Partners (TVP). Despite a decline in total capital allocated to the sector, the number of unique Bitcoin-native companies funded rose by 27.5% annually, with individual transactions growing by 31.8%. The total amount of capital raised across these deals decreased by 22.1% compared to the previous year, totaling $234 million for 2024. The report focused on early-stage Bitcoin-native software startups, excluding mining operations and large or late-stage funding rounds.
TVP defined a “Bitcoin-native” company as one founded on the principle that Bitcoin serves as a foundational global monetary asset and digital cash, with business models aligned to the Bitcoin protocol stack. These startups are building infrastructure, applications, and services that leverage the base Bitcoin network or related layers. The growth in pre-seed and early-stage investments was driven by a surge in activity in earlier-stage funding rounds, with pre-seed transactions increasing by 50% and seed-stage deals rising by 30%. Series A transactions also saw a notable 60% increase year over year, indicating growing investor interest in backing Bitcoin-native companies from their earliest phases of development.
The increase in deal count and lower capital allocation suggests a shift in market trends, with venture firms spreading investments across a wider range of early-stage companies. The median round sizes remained stable across funding stages, while aggregate capital raised dropped from $301 million in 2023 to $234 million in 2024. Pre-seed Bitcoin-native transactions increased by more than sevenfold over the four years from 2021 to 2024, positioning Bitcoin-native startups as a distinct and increasingly active segment within the broader crypto investment landscape.
Although Bitcoin-native startups represent a small portion of the total venture capital funding in the market, they have shown relatively higher momentum. In 2024, these startups accounted for 5.98% of overall crypto venture capital invested and 2.34% of all venture-backed crypto deal counts. This compares to Bitcoin’s massive share of the total crypto market cap, which currently stands above 62%, highlighting a gap between Bitcoin’s market dominance and its representation in startup investment flows. TVP argues that the Bitcoin-native sector is entering a breakout phase, with four consecutive years of growth in key investment metrics and increased interest from prominent investors.
Despite an overall contraction in venture capital allocations to crypto over the past two years, the Bitcoin-native segment has demonstrated resilience through consistent growth in startup formation and early-stage capital access. The number of Bitcoin-native startups receiving funding increased in 2024, reflecting rising investor interest in the category and a shift toward earlier-stage participation. Notable investors like Founders Fund, Ribbit Capital, and Y Combinator have shown interest in Bitcoin-native startups, participating in syndicates for deals in 2024. The report by TVP highlights the strength and potential of Bitcoin-native startups in the evolving crypto investment landscape.
