Last year, the prices of cryptocurrencies showed record growth, against the background of which venture investors began to make more financial injections into new Bitcoin-related startups.
The report from Trammell Venture Partners, which was published on Thursday, April 3, contains information that in 2024 the number of pre-seed transactions increased by 50%. These data indicate that more and more entrepreneurs have entered the Bitcoin arena. It is worth noting separately that the mentioned process is observed against the background of a cautious funding environment for a broader universe of technology startups.
Last year, the price of Bitcoin more than doubled. Over the same period, Ethereum has risen in price by more than 40%
In the current year, the United States Securities and Exchange Commission (SEC) approved exchange-traded funds that invest directly in Bitcoin. Over time, this decision was extended to Ethereum. Against this background, the cryptocurrency market gained a larger number of investors.
The digital currency rally picked up steam last year, following Donald Trump’s victory in the United States presidential election. Mr. Trump’s administration has a kind of pro-crypto status.
The boom of early-stage startups began several years ago. According to the data contained in the report from Trammell Venture Partners, the number of pre-seed deals in the Bitcoin-native category from 2021 to 2024 showed an increase of 767%. Across all early-stage funding rounds, almost $1.2 billion has been invested over four years.
Venture capital as a whole has been slow to rebound after the drop that followed a successful 2021, which became a kind of record-breaking period. In recent years, against the background of increased inflation, interest rates have grown, the high level of which has become a deterrent for investors in the context of their willingness to interact with risky assets.
Data from the National Venture Capital Association shows that in 2024, the volume of venture capital investments in the United States increased by 30% and exceeded $215 billion. In 2023, this figure was $165 billion. In 2021, the corresponding reading was recorded at the $356 billion mark.
Trammell Venture Partners’ research focuses on companies that hold the view that Bitcoin is the monetary asset of the future. These firms also use the Bitcoin protocol stack to develop their products.
Trammell Venture Partners has been investing in Bitcoin startups since 2014 and launched a dedicated Bitcoin-native venture capital fund series in 2020. Its portfolio includes brands such as Kraken, Unchained, Voltage, and Vida Global.
Data from The Tie analytical company indicates that crypto venture capital deals totaled more than $1.1 billion in February.
PitchBook predicts that the mentioned figure will exceed $18 billion for the entire 2025. The average annual reading for 2023-2024 was $9.9 billion. PitchBook expects that more active institutional engagement by companies such as BlackRock and Goldman Sachs will strengthen investor trust and become a catalyst for further capital inflows.
As we have reported earlier, GoMining Launches $100 Million Bitcoin Mining Fund.
