Pre-seed transactions in the bitcoin startup market increased by 50% in 2024, according to a recent report from Trammell Venture Partners, signaling growing entrepreneurial confidence in the cryptocurrency space despite cautious funding trends in the broader tech startup ecosystem.
This surge in early-stage bitcoin ventures occurs against a backdrop of significant cryptocurrency market gains, with bitcoin more than doubling in value and ethereum rising over 40% last year.
The market received additional legitimacy when the Securities and Exchange Commission approved exchange-traded funds for direct investment in both bitcoin and ethereum, broadening cryptocurrency’s investor base. The rally intensified following Donald Trump’s election victory in late 2024, which received substantial backing from the crypto industry.
Bitcoin Startup Firms See A Turning Point
The report highlights remarkable long-term growth in the bitcoin startup sector, with pre-seed deals in bitcoin-native businesses skyrocketing 767% from 2021 to 2024. During this four-year period, early-stage funding rounds attracted nearly $1.2 billion in investment.
“With four consecutive years of growth at the earliest stage of bitcoin startup formation, the data now confirm a sustained, long-term venture category trend,” said Christopher Calicott, managing director at Trammell. He attributes this renewed interest to technical upgrades and increased confidence in bitcoin’s future, noting, “Serious people no longer question whether bitcoin will remain 15 or 20 years into the future.”
While early-stage investment thrived, the total capital raised across all funding rounds up to Series B actually declined by 22% in 2024.
This mixed performance occurred as the broader venture capital market continued its recovery from the post-2021 downturn, with U.S. venture investment rising 30% to over $215 billion in 2024 from $165 billion in 2023, according to the National Venture Capital Association. This remains well below the 2021 peak of $356 billion.
BTC: Currency Of The Future?
Trammell, which has invested in bitcoin startups since 2014 and launched a dedicated bitcoin-native VC fund series in 2020, focuses on companies developing products based on the bitcoin protocol stack with the fundamental assumption that bitcoin represents the monetary asset of the future. Its portfolio includes established firms like Kraken, Unchained, Voltage, and Vida Global.
The momentum extends beyond bitcoin-specific ventures, with crypto VC deals exceeding $1.1 billion in February 2025 according to data from The Tie. PitchBook projects that crypto venture funding will surpass $18 billion in 2025, nearly doubling the 2023-2024 annual average of $9.9 billion, driven by increased institutional engagement from financial giants like BlackRock and Goldman Sachs.
Industry insiders see parallels with the internet’s early development. Joe McCann of Asymmetric, who is launching his third venture fund focused exclusively on crypto consumer applications, observes: “In the 1990s, VCs were investing in physical infrastructure. Ten years later, it was Groupon, Instagram, Facebook — apps built on top. That’s where we are with Web3 right now.”
However, the latest round of Trump administration tariffs have posed a massive threat to global economic growth, as the higher trade levies have inspired a round of retaliatory threats and reciprocal measures from main US trading partners.
In turn, risk assets like stocks and commodities have suffered a major rout similar to the pandemic selloff, dragging crypto as well. Still, many say that this represents a short-term setback for the industry and a chance to buy the dip, especially ahead of potential regulatory changes that could benefit crypto in general.
Note that Trump’s pick for SEC Chairperson, Paul Atkins, has gotten a confirmation nod from the SEC, which could set the stage for more crypto-friendly legislation down the line.
