Bitcoin startups are booming: Investments have increased by 767% since 2021!

Bitcoin startups are booming: Investments have increased by 767% since 2021!

Austin, Texas, USA - Today, the results for financing Bitcoin-based startups have been published. According to Trammell Venture Partners (TVP), the Bitcoin startup sector shows impressive growth that has been noticeable since 2021. Despite a decline in the overall invested amounts in the risk capital sector, the financing of Bitcoin-specific startups has developed impressively. TVP published its third annual analysis for the Bitcoin-based startup and risk capital landscape on April 3, 2025. Funding rounds for Bitcoin startups have increased by remarkable 767 % since 2021.

A significant increase can also be recorded in the number of transactions in the Bitcoin startup sector, which rose by 50 % in the year. This growth is supported by a compacted pre-seed phase in 2024, which is based on the growth of previous years. Overall, it is estimated that Bitcoin-based startups will take almost $ 1.2 billion in financial resources between 2021 and 2024, which indicates the resilience of these companies.

growth in the Bitcoin sector

The report by TVP indicates that there is a long-term growth trend in the Bitcoin startup sector. In the pre-seed phase in particular, Bitcoin native startups showed remarkable resilience, even if the general crypto and tech venture capital market declined in the years 2023 and 2024. Christopher Calicott, Managing Director at TVP, emphasizes that continuous financing indicates a sustainable development in the Bitcoin startup area.

tvp defines Bitcoin native as such whose product range is closely linked to the Bitcoin success. These companies use the Bitcoin protocol in their core operations. While the overall investments in the crypto sector have decreased, Bitcoin-specific investments were able to counteract this trend. Institutional venture capital companies such as Draper Associates, Founders Fund, Y Combinator and Ribbit Capital have increasingly made in Bitcoin native investments.

market developments and forecasts

Despite the positive news about Bitcoin startups, the general correlation between the Bitcoin course and risk capital financing has dropped in recent months. The 2024 Bitcoin bull market did not lead to a significant increase in risk capital financing for crypto and blockchain startups. A report by Insights for VC shows that the correlation between Bitcoin course and risk capital investments has decreased since January 2023. While Bitcoin reached new all-time highs, the investment activity of the venture capital providers stagnated.

In 2024, analysts counted 2,153 blockchain financing rounds with a total volume of $ 11.5 billion, which is below the values of 2021 and 2022. Despite these developments, analysts see positive signs for the future. For example, crypto companies could attract up to $ 18 billion in fresh capital in 2025, which would represent 32 % to 56 % compared to the previous year.

summarized, the latest developments in the Bitcoin startup sector show both strong resilience and a multi-layered market situation. While some sectors are stagnating, Bitcoin-based startups enjoy considerable growth and could make a decisive contribution to revitalized dynamics in the crypto market.