Trammell Venture Partners (TVP), an early-stage venture capital firm based in Austin, has announced the findings of its third annual research report on the growth of the Bitcoin startup and venture capital ecosystem. The report highlights that Bitcoin startups continue to show breakout-category growth, despite an overall decline in invested capital due to broader venture pullback.

Early-Stage Bitcoin Startups See 50% Increase in Deal Activity

The research shows a 50% year-over-year increase in transaction volume for early-stage Bitcoin startup investments. Although the total dollar value invested in the venture capital space has decreased, the number of deals within the Bitcoin sector has accelerated, maintaining a strong upward trend in 2024.

Pre-Seed Funding Rounds Surge 767% Since 2021

TVP’s analysis indicates that pre-seed funding rounds for Bitcoin startups have grown by 767% since 2021. This stage has continued building on previous years’ growth, signaling consistent expansion and startup formation in the Bitcoin ecosystem. From 2021 to 2024, early-stage Bitcoin startups have raised nearly $1.2 billion, according to TVP’s four-year research data.

Four-Year Growth Marks Bitcoin as Long-Term Venture Category

“Data from one or two years might suggest an anomaly. But four straight years of year-over-year growth in early-stage Bitcoin startup formation confirm a sustainable, long-term category trend,” said Christopher Calicott, Managing Director at TVP.

Bitcoin's Security and Decentralization Attract Startup Founders

“Many entrepreneurs across crypto are returning to the Bitcoin stack as a place to build long-term companies,” Calicott stated. “It makes a lot of sense: it’s objectively the most secure, reliable, and decentralized blockchain, and increasingly viable for building. As this wave of early-stage companies gains traction, more crypto value will move to the Bitcoin stack—a core thesis for TVP.”

TVP’s Research Backs Institutional Venture Movement in Bitcoin

The annual release of TVP’s Bitcoin Venture Ecosystem Research Summary adds to the growing research base around Bitcoin startups. The firm’s research aims to support the institutionalization of this emerging growth category within the broader crypto and blockchain venture capital landscape.

PHOTO: SHUTTERSTOCK

This article was created with AI assistance.