Despite venture capital activity declining across the board, funding for Bitcoin startups more than quadrupled in 2023, according to a new report.
Research from Trammell Venture Partners (TVP) shows that the number of Bitcoin-native pre-seed deals ballooned 360% last year, while the number of funded Bitcoin companies rose by 56.9%.
As explained in TVP’s Friday report, a “Bitcoin native company” is a firm whose product’s success is mutually aligned with that of the Bitcoin network and which is founded on the principle that BTC is the “global monetary asset of the future.”
That includes early-stage startup companies but discounts late-stage firms, Bitcoin miners, and “crypto” oriented companies.
While the absolute number of Bitcoin venture dollars invested fell -12.5% to $305 million in 2023, the count of Bitcoin venture deals rose 69.2%. By contrast, the equivalent numbers for the crypto industry were -64.5% and -35.3%, respectively.
Crypto venture deals still outnumber Bitcoin ones by about 20:1, though the uptick of the latter last year was substantial. Some of last year’s big investors included General Catalyst, Y Combinator, and Draper Associates – the early-stage VC firm run by long-time Bitcoin bull Tim Draper.
The surge in funding coincides with a revival of developer activity on Bitcoin over the past year, sparked by new technological capabilities discovered on the network. These include the NFT protocol Ordinals, the Bitcoin computing paradigm BitVM, and the upcoming “Runes” protocol – which will allow for efficient tokens to be issued on Bitcoin.
Ordinals activity began to surge again this week, as did the average cost to transact on Bitcoin. Rising fees have more developers in search of ways to build more effective Bitcoin layer 2 solutions to enable more efficient transfers, and funding is moving in that direction.
The post Venture Capital Interest in Bitcoin Startups Has Exploded: Research appeared first on CryptoPotato.
Research from Trammell Venture Partners (TVP) shows that the number of Bitcoin-native pre-seed deals ballooned 360% last year, while the number of funded Bitcoin companies rose by 56.9%.
VC Funding Explodes On Bitcoin
As explained in TVP’s Friday report, a “Bitcoin native company” is a firm whose product’s success is mutually aligned with that of the Bitcoin network and which is founded on the principle that BTC is the “global monetary asset of the future.”
That includes early-stage startup companies but discounts late-stage firms, Bitcoin miners, and “crypto” oriented companies.
While the absolute number of Bitcoin venture dollars invested fell -12.5% to $305 million in 2023, the count of Bitcoin venture deals rose 69.2%. By contrast, the equivalent numbers for the crypto industry were -64.5% and -35.3%, respectively.
Crypto venture deals still outnumber Bitcoin ones by about 20:1, though the uptick of the latter last year was substantial. Some of last year’s big investors included General Catalyst, Y Combinator, and Draper Associates – the early-stage VC firm run by long-time Bitcoin bull Tim Draper.
Rise In Bitcoin Development
The surge in funding coincides with a revival of developer activity on Bitcoin over the past year, sparked by new technological capabilities discovered on the network. These include the NFT protocol Ordinals, the Bitcoin computing paradigm BitVM, and the upcoming “Runes” protocol – which will allow for efficient tokens to be issued on Bitcoin.
Ordinals activity began to surge again this week, as did the average cost to transact on Bitcoin. Rising fees have more developers in search of ways to build more effective Bitcoin layer 2 solutions to enable more efficient transfers, and funding is moving in that direction.
The post Venture Capital Interest in Bitcoin Startups Has Exploded: Research appeared first on CryptoPotato.
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