New findings from venture capital firm Trammell Venture Partners (TVP) reveal a significant increase in funding for Bitcoin startups, with a total of almost $1.2 billion raised by early-stage companies between 2021 and 2024. Despite a general decline in the crypto and tech venture capital markets in 2023 and 2024, there was a notable resilience in the formation and funding of Bitcoin-specific startups, especially at the Pre-Seed stage.
The Growth of Bitcoin-Native Startup Activity
The 2024 edition of TVP’s Bitcoin-Native Venture Capital Landscape Research Brief highlights a 767% increase in transaction volume for Bitcoin Pre-Seed startups compared to 2021. This surge indicates a maturation and stability in the venture category. In 2024 alone, the number of Pre-Seed transactions rose by 50% year-over-year, while the overall deal count for Bitcoin-native startups grew by 31.8%.
The Landscape of Bitcoin-Native Venture Capital
Christopher Calicott, Managing Director at TVP, noted that the consistent year-over-year growth in early-stage Bitcoin startup formation confirms a long-term trend in the venture category. TVP defines a Bitcoin-native company as one that aligns its product success with the success of Bitcoin and utilizes the Bitcoin protocol stack in its core operations.
Despite a general decline in overall crypto venture capital investments, Bitcoin-specific funding showed a different trajectory. In 2024, Bitcoin-native deals accounted for a larger portion of venture activity, with significant contributions from institutional VC firms like Draper Associates, Founders Fund, Y Combinator, and Ribbit Capital.
Focus on Early-Stage Software and Infrastructure Startups
TVP's report focused on early-stage software and infrastructure startups in the Bitcoin space, excluding mining operations and late-stage outlier deals. The data collected from 2021 to 2024 aims to provide clarity to investors looking for long-term exposure to Bitcoin's startup ecosystem.
To access the complete report, visit TVP’s official website.
This article on the significant funding raised by Bitcoin startups was originally published on Bitcoin Magazine and authored by Vivek Sen Bitcoin.
Frequently Asked Questions
How Does Gold Perform as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Because of their limited supply, gold prices can fluctuate. Physical gold is not always in stock.
Can I have physical gold in my IRA
Gold is money. Not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
One reason is that gold has historically performed better than other assets during periods of financial panic. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. You can buy gold in small amounts because it is so liquid. This allows you to profit from short-term fluctuations on the gold market.
Is gold buying a good retirement option?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion bars are the most popular way to invest in gold. However, there are many other ways to invest in gold. Research all options carefully and make an informed decision about what you desire from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
What amount should I invest in my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you can't touch your principal (the initial amount that was deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
You cannot withhold your earnings from income taxes. You will pay income taxes when you withdraw your earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also assume that you make $10,000 per year from your Roth IRA contributions. Federal income taxes would apply to the earnings. You would be responsible for $3500 That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types if Roth IRAs, Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Who is the owner of the gold in a gold IRA
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
What Is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These metals are known as “precious” because they are rare and extremely valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion is the physical metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This will ensure that you receive annual dividends.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, your gains are subject to a small tax. You can also access your funds whenever it suits you.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
bbb.org
How To
How to Hold Physical Gold in an IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Another option is to purchase physical gold. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You also have a lower chance of theft than stocks.
However, there are some disadvantages too. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. The taxman might also ask you questions about where your gold is located.
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Vivek Sen Bitcoin
Title: Bitcoin Startups Raise $1.2 Billion in Funding
Sourced From: bitcoinmagazine.com/news/bitcoin-startups-raised-nearly-1-2-billion
Published Date: Thu, 03 Apr 2025 13:29:16 +0000
