Bitcoin-Native Startups See 767% Pre-Seed Funding Surge

Trammell Venture Partners, an Austin-based venture capital firm, has released its third annual report on the growth of the Bitcoin-native startup and venture capital landscape. The report highlights a significant increase in investment activity at the Pre-Seed stage, with a 767% rise in funding rounds since 2021. This growth is particularly notable given the broader venture investment pullback, which has led to a decline in total dollars invested. Despite this, the number of transactions has increased by 50% year-over-year, indicating a robust and sustained trend in the Bitcoin startup sector.

The report reveals that early-stage, Bitcoin-native startups have raised nearly $1.2 billion over the 2021-2024 period. This data, based on four years of longitudinal research, confirms a long-term trend of growth in the Bitcoin startup category. Christopher Calicott, TVP's managing director, emphasized that this sustained growth is not an anomaly but a clear indication of the increasing interest in building companies on the Bitcoin stack. He noted that the Bitcoin blockchain's security, reliability, and decentralization make it an attractive platform for entrepreneurs, leading to a growing number of early-stage companies finding traction and accruing crypto value to the Bitcoin stack.

The annual release of TVP's Bitcoin-Native Venture Capital Landscape Research Brief aims to support the institutionalization of venture investment for this emerging growth category within crypto and blockchain venture capital. The research brief is available for download, providing valuable insights for investors and entrepreneurs in the Bitcoin startup ecosystem. TVP, founded in 2016, has been at the forefront of investing in Bitcoin-native, security and privacy tech, and applied AI companies. Since 2020, the firm has focused on backing founders building on the layers of the Bitcoin protocol stack through its dedicated Bitcoin-native mandated VC fund series, The TVP Bitcoin Venture Fund series.