Startups focused on Bitcoin made up just around 6% of all crypto funding deals in 2024, according to a report by Trammell Venture Partners.
The number of pre-seed funding rounds for Bitcoin-focused startups has skyrocketed by an impressive 767% since 2021, according to a new report from venture capital firm Trammell Venture Partners (TVP).
In 2024 alone, Bitcoin pre-seed transactions surged 50% year-over-year, accompanied by a 27.5% increase in the number of startups securing early-stage funding. This momentum highlights a strong and growing conviction in Bitcoin’s long-term potential among founders and investors alike.
Christopher Calicott, managing director at TVP, attributes the surge in activity to the unmatched resilience of the Bitcoin network:
“Many entrepreneurs across the crypto space are returning to the Bitcoin stack as the foundational layer for their businesses. It’s a logical move—Bitcoin is objectively the most secure, reliable, and decentralized blockchain available.”
Despite the uptick in deals, the total capital raised in Bitcoin pre-seed rounds dipped more than 22% in 2024. Median round sizes and startup valuations have steadily declined since peaking during the 2021 bull market. Although 2024 saw a partial recovery, funding levels have yet to reach their previous highs—largely due to lingering uncertainty around U.S. crypto regulations under prior SEC leadership.
Broader macroeconomic headwinds—including persistent interest rate pressure, fears of a prolonged trade war, and potential recession risks—have further dampened investor appetite for speculative assets. Nevertheless, Bitcoin’s fundamentals and network advantages continue to attract serious builders focused on long-term value.
Crypto VCs don’t expect 2025 funding to reach 2021-2022 levels
In January, Deng Chao, CEO of institutional asset manager HashKey Capital, stated with conviction that pro-crypto regulatory developments in the United States would drive a significant surge in venture capital investment across the crypto sector in 2025.
At the same time, he cautioned that ongoing macroeconomic instability and geopolitical tensions could inject volatility into the market, potentially disrupting the positive momentum created by favorable regulatory shifts.
On April 2, U.S. President Donald Trump signed a comprehensive tariff order, introducing a 10% baseline tariff on imports from all countries and implementing reciprocal trade measures against key trading partners—an aggressive move that rattled global financial markets.
Historically, risk-on assets like stocks and cryptocurrencies tend to underperform during periods of trade conflict and economic uncertainty, as investors pivot toward safer havens such as cash, government bonds, and durable commodities.
In 2022, Haun Ventures made headlines by investing $1.5 billion into crypto firms. However, adapting to current market dynamics, the firm has announced plans to raise a more measured $1 billion in the first half of 2025.
Echoing cautious optimism, analysts at Galaxy Digital project a 50% year-over-year increase in VC-led crypto investments in 2025. Still, they acknowledge that funding levels are unlikely to match the peak activity seen during the 2021–2022 cycle.