A new report from Trammell Venture Partners shows significant growth in pre-seed investments in Bitcoin startups, although capital raised has declined in 2024.
Dynamics of Pre-Seed Investments in Bitcoin
According to Trammell Venture Partners, the number of pre-seed deals in Bitcoin startups has increased by 767% since 2021. In 2024, year-over-year growth in pre-seed transactions reached 50%, along with a 27.5% increase in the number of companies receiving funding. Christopher Calicott, managing director of TVP, noted that entrepreneurs are revisiting Bitcoin as a reliable platform for building their companies.
> "Many entrepreneurs across crypto are revisiting the Bitcoin stack as the long-term place to build their companies. It makes perfect sense: The objectively most secure, reliable, and decentralized blockchain is the obvious platform of choice." CITE_W_A
Impact of Macroeconomic Factors
Despite the rising number of deals, capital raised in Bitcoin pre-seed funding rounds decreased by over 22% in 2024. The median funding round size and startup valuations have also shown a declining trend from 2021 to 2023. This is influenced by unclear crypto regulations in the U.S., as well as economic uncertainty linked to fears of a prolonged trade war, high interest rates, and the possibility of a recession.
Future of Investments in the Crypto Industry
Despite positive forecasts regarding regulatory changes in the U.S., experts do not expect a return to 2021-2022 levels in 2025. Donald Trump signed an order introducing tariffs, negatively impacting financial markets. The investment firm Haun Ventures, which invested $1.5 billion into crypto firms in 2022, is now seeking to raise only $1 billion in the first half of 2025, citing changed market conditions.
The rising interest from investors in Bitcoin startups is confirmed by the increasing number of deals. However, macroeconomic factors and uncertainties in the regulatory environment significantly impact the investment climate in the crypto industry.
