New findings from Trammell Venture Partners (TVP) shed light on the robust growth of bitcoin startups, which collectively raised almost $1.2 billion between 2021 and 2024. Despite market fluctuations in the crypto and tech sectors from 2023 to 2024, the creation and funding of Bitcoin-specific startups remained resilient, especially at the Pre-Seed stage.
Surge in Bitcoin Pre-Seed Startup Activity
The 2024 edition of TVP’s Bitcoin-Native Venture Capital Landscape Research Brief reveals a significant uptick in Bitcoin Pre-Seed startup transactions, soaring by 767% compared to 2021. This surge indicates a maturation and sustainability of the venture category. In 2024 alone, Pre-Seed transactions spiked by 50% year-over-year, while the overall deal count for Bitcoin-native startups increased by 31.8%.
Long-Term Trend Confirmation
Christopher Calicott, TVP's Managing Director, notes, "One or two years’ data might represent an anomaly, but with four consecutive years of year-over-year growth at the earliest stage of Bitcoin startup formation, the data now confirm a sustained, long-term venture category trend."
Defining Bitcoin-Native Companies
TVP classifies a Bitcoin-native company as one that aligns its product success with Bitcoin's success and integrates the Bitcoin protocol stack into its core operations.
Resilience in Bitcoin-Specific Investments
Despite an overall decline in venture capital funding within the crypto sector, TVP's research demonstrates that investments in Bitcoin-specific ventures defied this trend. In 2024, Bitcoin-native deals accounted for a larger portion of venture activity, attracting investments from prominent institutional VC firms like Draper Associates, Founders Fund, Y Combinator, and Ribbit Capital.
Exclusive Focus on Early-Stage Startups
TVP's report excludes mining ventures and late-stage outlier deals, concentrating instead on early-stage software and infrastructure startups. The dataset spans from 2021 to 2024, providing valuable insights for investors seeking prolonged exposure to Bitcoin's startup ecosystem.
For those interested, the complete report can be downloaded from TVP’s official website.
This article on Bitcoin startups raising nearly $1.2 billion was originally published on Bitcoin Magazine and authored by Vivek Sen Bitcoin.
Frequently Asked Questions
Should you open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
You should start an account if you intend to retire with the money.
Precious metals will appreciate over time. They offer diversification advantages.
Additionally, silver and gold prices tend to move in tandem. They make a good choice for both assets and are a better investment.
You shouldn't invest precious metal IRAs if you don't plan on retiring or aren't willing to take risks.
What is the interest rate on a gold IRA?
It all depends upon how much money you invest. If you have $100,000 to spare, then yes. You can't if you have less than $100,000
The amount you deposit into an IRA will affect its potential to earn interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
While you may earn more interest there than elsewhere, you are also exposed to more risky investments. It's not a good idea to lose all of the money you have invested in the stock exchange.
A IRA will be more beneficial if you can only contribute $100,000 annually. You can do this until the market grows again.
Which type or type of IRA would be best?
When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.
The Roth option can be a smart choice if your retirement savings are limited and you don't have any other investments. It's also worth considering if your plan is to work after the age of 59 1/2.
If you plan on retiring early, the traditional IRA may be better because you'll likely owe any taxes on the earnings. If you are going to be working beyond 65 years old, the traditional IRA may make more sense because you can withdraw all or part of your earnings without having to pay taxes.
Can I physically possess gold in my IRA account?
Many people want to know if gold can be physically owned in an IRA. It is a valid question, as there is no legal way to possess gold in an IRA account.
You can still own gold in an IRA if you look at the law.
Most people don’t realize just how much they could save by putting your gold in an IRA, rather than keeping it at home.
It's very easy to dispose of gold coins, but much harder to make an IRA. You'll have to pay twice taxes if you keep your gold in your home. Once for the IRS and once for the state where you live.
You can also lose your gold and have to pay twice the taxes. So why would anyone want to keep their gold in their home?
It might seem that you want the security of knowing your gold is safe inside your home. You can protect your gold from theft by storing it somewhere more secure.
If you are planning to visit frequently, your gold should not be left at home. Theft can easily take your gold when you're not home.
Better yet, store your gold inside an insured vault. This will ensure that your gold is protected against fire, flood, earthquake and robbery.
You won't be responsible for paying any property tax if you store your gold in a vault. Instead, you will have to pay income tax for any gains you make selling your gold.
An IRA is a way to avoid paying taxes on gold. You won't be subject to income tax if you earn interest from your gold with an IRA.
Capital gains tax is not a requirement for gold investments. You can cash out your entire investment anytime you wish.
You won't have to move your gold because IRAs are federally regulated.
Bottom line: You can have gold in an IRA. Fear of theft is all that holds you back.
Statistics
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
External Links
kitco.com
en.wikipedia.org
investopedia.com
takemetothesite.com
How To
How to make your IRA a gold IRA
Are you interested in moving your retirement savings to a more gold-colored IRA instead of a traditional IRA? This article will guide you through the process. Here's how you can do it.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling an account over offers tax advantages. Some prefer to invest directly in physical assets like precious and rare metals.
There are two types IRAs – Traditional IRAs (or Roth IRAs). The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. You would still be able to keep all your money if you had the same amount invested in a Roth IRA.
If you are looking to convert your traditional IRA into a gold IRA, here's what to know.
First, you must decide whether to move your balance into a new bank account or transfer funds from your existing account to the new one. When transferring money, you'll pay income tax at your regular rate on any earnings that exceed $10,000. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.
Once you've made up your mind, you'll need to open up a new account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Once you are done, you will fill out paperwork proving ownership of your IRA. Once you've completed the forms, you'll submit them to your bank. They'll verify your identity and give instructions on where to send the checks and wire transfers.
The fun part is here. You'll deposit cash into your new account and wait for the IRS to approve your requests. Once you have received approval, you will receive a letter that allows you to withdraw funds.
That's it! You can now relax and watch your money grow. You can also close your IRA and transfer the balance to a new one if you change your mind.
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By: Vivek Sen Bitcoin
Title: Bitcoin Startups Raise $1.2 Billion: A Deep Dive into Early-Stage Funding
Sourced From: bitcoinmagazine.com/news/bitcoin-startups-raised-nearly-1-2-billion
Published Date: Thu, 03 Apr 2025 13:29:16 +0000
