The post Bitcoin-native startups see funding boost despite overall capital decline in 2024 appeared on BitcoinEthereumNews.com.

The number of Bitcoin-native startups receiving venture capital investment increased in 2024 despite a decline in the total capital allocated to the sector, according to a new report published by Trammell Venture Partners (TVP). The report highlighted that the number of unique Bitcoin-native companies funded rose 27.5% on a yearly basis, while the number of individual transactions grew 31.8%.  At the same time, the total amount of capital raised across those deals fell 22.1% compared to 2023, totaling $234 million for the year.  The report focused on early-stage Bitcoin-native software startups, excluding mining operations and atypically large or late-stage funding rounds. TVP defined a “Bitcoin-native” company as one founded on the principle that Bitcoin serves as a foundational global monetary asset and digital cash, with business models aligned to the Bitcoin protocol stack.  This emerging category includes startups building infrastructure, applications, and services that leverage the base Bitcoin network or related layers. Growth in pre-seed and early-stage investments The increase in deal count was driven by heightened activity in earlier-stage funding rounds. Pre-seed transactions grew by 50%, while seed-stage deals rose by 30%.  Series A transactions also saw a notable 60% increase year over year. This suggests growing interest among investors in backing Bitcoin-native companies from their earliest phases of development despite broader market caution in crypto venture capital. The divergence between the increased startup funding and lower capital allocation indicates a shift in market trends. Venture firms are spreading investments across a wider range of early-stage companies, potentially favoring leaner rounds and valuation discipline over large, concentrated bets. According to the report, the median round sizes remained stable across funding stages, though the aggregate capital raised dropped from $301 million in 2023 to $234 million in 2024. Pre-seed Bitcoin-native transactions increased by more than sevenfold over the four years…

---

Filed under: News - @ April 3, 2025 11:21 pm