Ego Death Capital Closes $100 Million Fund for Bitcoin Startups

Ego Death Capital, a venture capital firm dedicated to the Bitcoin ecosystem, has successfully closed its second fund, securing $100 million in investments. This achievement marks a significant milestone for the firm, which has been focused on backing early-stage startups building on the Bitcoin blockchain since its inception in 2022. The close of the second fund, which was first announced in January 2024, comes about 18 months later, demonstrating the firm's commitment and strategic vision in the crypto venture landscape.

The second fund, valued at $100 million, is more than four times the size of the firm's first fund, which raised $25.2 million, along with a $7.5 million special purpose vehicle. This substantial increase in funding reflects the growing interest and investment in the Bitcoin ecosystem, as well as the firm's ability to attract capital from investors who share its vision. The fund will focus on leading Series A rounds, with initial checks ranging from $3 million to $8 million, targeting companies that build on Bitcoin and its emerging application layers, including the Lightning Network, Fedimint, and Discreet Log Contracts.

Ego Death Capital's investment strategy is centered on backing companies that treat Bitcoin as infrastructure rather than a speculative asset. The firm's general partner, Lyn Alden, emphasized this point, stating, "We’re investing in businesses that treat Bitcoin not as a trade, but as infrastructure — something to build on, not bet on." This approach aligns with the growing trend among crypto venture capitalists who see Bitcoin as a secure and battle-tested base for real-world applications, beyond its traditional role as a store of value.

The firm is targeting a gap in Series A funding for Bitcoin-focused startups, where founders often struggle to find lead investors with both technical expertise and long-term commitment. Ego Death Capital aims to fill this gap by backing companies with working products and early traction, rather than speculative projects chasing short-term gains. This strategy is evident in the firm's recent investments, which include Relai, a Swiss bitcoin brokerage; LN Markets, a derivatives trading platform built on the Lightning Network; and Roxom, which is building a global trading system on Bitcoin.

Ego Death Capital's success in closing its second fund at $100 million underscores the growing recognition of Bitcoin's potential as a transformative technology. The firm's strategic vision and expertise in identifying and supporting promising startups in the Bitcoin ecosystem position it as a key player in fostering innovation and growth within the cryptocurrency industry. As the firm continues to invest in early-stage startups building on the Bitcoin blockchain, it is poised to play a critical role in shaping the future of the Bitcoin ecosystem and the broader crypto venture landscape.