While much of the crypto VC scene hit the brakes in 2024, Bitcoin-native startups went full throttle—pulling in more early-stage deals than ever before, according to a new report from Trammell Venture Partners (TVP).

The data points to a big shift: more founders and investors are betting on Bitcoin as a platform, not just an asset.

Bitcoin Deals Are Bucking the Trend

Crypto funding overall dropped 22%, but that didn’t stop Bitcoin-focused startups. TVP found:

• A 32% jump in deal count for Bitcoin-native companies
  
• Pre-seed rounds surged 50%
  
• Seed deals rose 30%
  
• And Series A activity grew 60%
  

TVP defines these startups as building on Bitcoin’s base layer or Lightning, not just using BTC as payment. Think infrastructure, financial tools, and real-world apps—all rooted in Bitcoin’s core tech.

Founders Are Getting Laser-Focused—and It’s Paying Off

While Web3 builders spread across multiple chains, Bitcoin startups are staying lean and focused. That focus seems to be working: pre-seed activity in 2024 was 7x higher than it was in 2021.

TVP believes this trend is just heating up, with four straight years of growth signaling real momentum behind the Bitcoin startup movement.

Big-Name VCs Are Jumping In

It’s not just Bitcoiners taking notice. In 2024, top-tier firms like Founders Fund, Y Combinator, Valor, and Ribbit Capital wrote checks to Bitcoin-native startups.

Still, the category is underfunded relative to its dominance. Bitcoin makes up more than 50% of the total crypto market cap, yet only got 2.3% of VC funding in 2024. That mismatch is starting to catch the attention of smart money.

Bitcoin Startups = Simple, Targeted, High Signal

Why the surge? Bitcoin startups tend to have clearer business models, less fluff, and are often closer to real-world adoption. No tokenomics theater—just building.

With a growing wave of early-stage founders and a fresh wave of capital, Bitcoin is becoming more than a store of value—it’s looking like a serious innovation layer for the next cycle.