Even though venture capital funding in crypto isn’t straightforward, Bitcoin-focused startups quietly return at the most basic level. A new study from Trammell Venture Partners (TVP) says that since 2021, the number of pre-seed funding rounds for Bitcoin startups has gone through the roof, rising by 767%. In 2024, these early-stage deals will only make up 6% of all crypto funding. However the trend is positive for the future of decentralized innovation, especially on the Bitcoin blockchain, which is known for being safe and dependable.
Bitcoin Startup Pre-Seed Activity Rises
Even though the economy is having a tough time, the Bitcoin startup community is growing at its core. According to the TVP report, in 2024, there was a 50% rise in Bitcoin pre-seed transactions and a 27.5% rise in the number of startups supported.Â
Why Bitcoin Stack Is Attracting Founders Again
Christopher Calicott, Managing Director of Trammell Venture Partners, says that Bitcoin’s unmatched security, decentralization, and dependability are to blame for its growth. “Many crypto entrepreneurs are looking again at the Bitcoin stack as the best place to build their businesses for the long term,” he said.Â
Lower Funding Despite Higher Deal Volumes
Even though the number of deals has grown significantly, the amount of money raised in pre-seed rounds fell by more than 22% in 2024. Since 2021, median deal sizes and startup valuations have been slowly declining. This year, there was only a slight rise in both.Â
Cautious optimism for 2025 and beyond
Even though crypto VCs are cautiously optimistic about 2025, not many thinks funding will reach its high point in 2021 or 2022. Firms like Haun Ventures and Galaxy Digital say there could be growth next year, but they also say that trade wars, fears of inflation, and political issues will continue to be problems.Â
Conclusion
It’s good news for the long-term health of the crypto space that the number of Bitcoin pre-seed startups has grown by 767% since 2021, even though macroeconomic and governmental storms are coming. Founders and investors are realising that new ideas founded on a safe, secure, and decentralised platform like Bitcoin may be better able to handle the impending ups and downs.
