While venture capital investment across the general crypto sector declined in 2024, Bitcoin-native startups experienced a significant uptick, according to a new research brief by Trammell Venture Partners (TVP). The data reveals a clear shift: early-stage Bitcoin-focused companies are capturing a larger slice of the venture funding landscape.
Bitcoin-Focused Ventures Outpace Industry Trends
Total crypto funding dropped 22.1% year-over-year, but Bitcoin startup deal volume surged by nearly 32%, with pre-seed activity climbing 50%. TVP defines Bitcoin-native ventures as companies building directly on Bitcoin’s infrastructure, such as the base layer or Lightning Network, rather than adjacent blockchain platforms.
These startups, unlike broader Web3 or multi-chain projects, maintain a dedicated focus on Bitcoin’s protocol and economic principles, aligning with Bitcoin’s long-term utility as a financial and settlement layer.
Early-Stage Momentum Builds Across All Rounds
TVP’s findings highlight growth across all fundraising stages:
- Pre-seed deals grew 7x compared to 2021
- Seed rounds saw a 30% increase YoY
- Series A rounds rose 60%, reflecting deeper investor conviction in Bitcoin-native startups
Although total capital raised dipped slightly, the volume of deals and company formation has steadily increased for four consecutive years—underscoring sustained innovation and resilience in the Bitcoin ecosystem.
Top Venture Firms Are Backing Bitcoin
Institutional attention is also accelerating. In 2024, leading firms such as Founders Fund, Y Combinator, Valor Equity Partners, and Ribbit Capital invested in Bitcoin-centric ventures. This trend suggests that Bitcoin is evolving beyond “digital gold” and mining into a platform for application-level innovation.
Still, TVP notes a stark disparity: despite Bitcoin commanding over 50% of crypto’s total market cap, it attracted only 2.3% of venture capital funding in 2024—a gap that may represent an untapped opportunity for forward-looking investors.
Bitcoin Startups Offer Focused Innovation and Clearer Models
Unlike multi-chain dApps, Bitcoin-native startups often benefit from simplified development paths, focused business models, and high signal-to-noise ratios—qualities that increasingly resonate with both developers and capital allocators.
With consistent year-over-year growth and growing institutional buy-in, the Bitcoin startup space is positioning itself as a mature, high-conviction segment of the broader crypto economy.
