Trammell Venture Partners (TVP), based in Austin, Texas, has revealed its second annual results from its in-depth research into the burgeoning bitcoin-native startup and venture capital ecosystem.
Despite a notable drop in investments in the crypto market throughout 2023, TVP research highlights a notable increase in the bitcoin startup sector, particularly in the Pre-Seed stage, with a surprising year-on-year increase in 360% in transaction count.
Unlike the broader startup landscape that saw a decline in exit activity to a 10-year low in 2023, bitcoin-native startups showed resilience and growth, marking a 69.2% year-over-year increase. TVP data revealed that these early-stage bitcoin startups collectively raised nearly $1 billion between 2021 and 2023, signifying substantial interest and investment in this sector.
Christopher Calicott, CEO and founding partner of TVP, commented on the findings and noted a strong desire among founders to leverage bitcoin. He highlighted the growing support infrastructure and technical advances that are driving innovation within the bitcoin ecosystem.
“Early indicators from TVP's research are in line with the expectations we had for the end state of the 'crypto' company: the founders really want to build on bitcoin specifically,” Calicott said. “With a rapidly growing range of technological capabilities driving greater scalability and buildability in bitcoin, this long-standing TVP hypothesis is becoming a reality supported by evidence and data.”
In 2023, the number of native bitcoin venture deals grew significantly, increasing by 69.2%, while the broader crypto venture deal count decreased by 35.3%. Although with the rise of bitcoin native venture deals, crypto venture deals still make up the overwhelming majority of deal count and venture money invested.
“Due to the cyclical nature and institutional adoption of bitcoin, its market cap dominance is even greater than at the time of our 2023 report,” Calicott continued. “Despite this, the allocation to native bitcoin venture capital remains very low, relatively speaking. “We believe delta will begin to close as more allocators begin to see the compounding benefits of a rapidly expanding design space in bitcoin thanks to these early-stage bitcoin startups.”
TVP's commitment to driving insights and research for the venture capital landscape led to the launch of the industry's first fund series focused on the native bitcoin ecosystem in 2021. This annual publication of the Venture Capital Landscape Research Digest TVP's Emerging bitcoin Native Risk aims to provide valuable insights. data and support for institutional investors looking to explore opportunities within the growing bitcoin startup sector.
The full TVP bitcoin startup ecosystem research summary is available for bitcoin-venture-capital-research/”>dischargewhich offers a comprehensive overview of the evolving landscape and investment opportunities in native bitcoin technologies.
