Bitcoin startup deals rise 767% since 2021 amid cautious funding

The number of pre-seed funding rounds for Bitcoin (CRYPTO:BTC) startups has surged by 767% since 2021, according to a recent report from venture capital firm Trammell Venture Partners (TVP).

In 2024 alone, pre-seed transactions rose by 50% year-over-year, alongside a 27.5% increase in the number of startups funded.

Despite this growth, the total capital raised in Bitcoin pre-seed funding rounds fell by over 22% in 2024, with median round sizes and valuations remaining below the highs of the 2021 bull market.

Christopher Calicott, TVP’s managing director, attributed the rise in deals to Bitcoin’s robust and decentralised network.

“Many entrepreneurs across crypto are revisiting the Bitcoin stack as the long-term place to build their companies,” Calicott stated.

The report noted that unclear U.S. crypto regulations under previous SEC leadership and macroeconomic challenges have dampened investor confidence.

High interest rates, trade war fears, and recession concerns have further eroded risk appetite for speculative assets like cryptocurrencies.

TVP’s analysis underscores Bitcoin’s growing appeal as a platform for innovation.

Over the past four years, early-stage Bitcoin-native startups raised nearly $1.2 billion in funding.

“With four consecutive years of year-over-year growth at the earliest stage of Bitcoin startup formation, the data now confirm a sustained, long-term venture category trend,” emphasised Calicott, noting that this sustained growth reflects a long-term trend.

However, broader venture capital investment in crypto remains cautious.

Firms like Haun Ventures and Galaxy Digital have scaled back their fundraising targets for 2025 compared to record highs in 2021-2022.

Analysts predict that while VC-led crypto investments may rise by 50% year-over-year in 2025, they are unlikely to reach prior peaks.

The report highlights Bitcoin’s unique position within the crypto ecosystem.

As regulatory clarity improves and technical innovations like SegWit and Taproot enable new use cases, Bitcoin startups are poised for further growth.

Yet, macroeconomic uncertainty continues to pose challenges for venture capital in this space.

At the time of reporting, the Bitcoin (BTC) price was $82,828.02.