Bitcoin-native startups see funding boost despite overall capital decline in 2024

Bitcoin-native startups see funding boost despite overall capital decline in 2024

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number BitcoinThe startups that receive investment capital investment increased in 2024 despite the decrease in the total capital allocated to this sector, according to a new report published by Tramll Venture Partners (TVP).

The report highlighted that the number of startups in the unique bitcoin currency, which was funded, increased by 27.5 % on an annual basis, while the number of individual transactions grew by 31.8 %.

Meanwhile, the total capital collected in these deals decreased by 22.1 % compared to 2023, with a total of $ 234 million for this year.

The report focused on startups in the original programs at an early stage of Bitcoin, with the exception of mining operations and abnormal or abnormal financing rounds.

TVP defined the company “Bitcoin Native” as a company that was established on the principle that Bitcoin is like the global constituent monetary assets and digital criticism, while aligning business models with Bitcoin Protocol.

This emerging category includes building infrastructure, applications and services that benefit from the basic bitcoin network or related layers.

Growth in pre -seed investments and early stage

The increase in the number of deals was driven by the increasing activity in the financing rounds in the previous stage. Transactions grew 50 % before the seed, while seed phase deals increased by 30 %.

Series A Series also witnessed a 60 % annual increase in an annual basis. This indicates an increasing interest among investors in supporting the original companies from Bitcoin from their early stages of development despite the wider market warning at Crypto Venture Capital.

The difference between increasing startup financing and customizing low capital indicates a shift in market trends. Project companies publish investments through a wide range of companies in the early stage, and you may prefer smaller tours and evaluation discipline on large and focused bets.

According to the report, the sizes of the average round remained stable through the financing stages, despite the decrease in the total capital raised from $ 301 million in 2023 to $ 234 million in 2024.

Bitcoin’s non -original transactions more than seven times over the four years increased from 2021 to 2024.

The continuous rise in the activity of deals is involved in an early stage of the original startups in Bitcoin as an increasingly effective and effective segment within the broader investment scene.

Small but grow

Although the original startups in Bitcoin are still a small part of the total investment capital financing in the market, they have shown relatively higher momentum.

According to TVP, these startups account for 5.98 % of the total Crypto Venture Capital investor in 2024 and 2.34 % of all project encoding census.

This is compared to the huge Bitcoin share of the total Crypto Market Cap, which currently exceeds 62 %. The contrast sheds light on the continuous gap between the dominance of the Bitcoin market and its representation in investment flows in the startup.

TVP argued that the original bitcoin sector enters the collapse, with four consecutive years of growth through the main investment standards.

The report also highlighted that the bitcoin entrepreneurship is increasingly attracting the attention of prominent investors, including Foundation FundRibbit Capital, Hockrice, Valor Equity Partners, Boost VC, Plug and Play, Village Global, GSR Ventures, and Y Combinator. All of these investment funds participated in the original Bitcoin deals unions in 2024.

Although the comprehensive investment capital of Crypto has contracted over the past two years, the original Bitcoin sector has shown flexibility through fixed growth in the formation of startup and access to early capital.

The number of startups emerging companies in Bitcoin, which receives financing in 2024, increased even with the decrease in the total capital, which reflects the high interest of the investor in the category and the shift towards participation in the previous stage.

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