Report: Bitcoin Startup Investments Outpaced the Rest of the Web3 Sector

In 2022, Bitcoin-focused startups outpaced the entire crypto industry in terms of investments. The report from Trammell Venture Partners (TVP) notes.

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The number of funding deals for Bitcoin projects rose sharply by 52.9% versus 2021. Meanwhile, total investment in the Web3-segment rose by only 1%.

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The combined market capitalization of digital-gold-focused companies also rose by 13.9% — to $343 million.

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In 2022, Bitcoin accounted for about 42% of the total market capitalization of crypto assets.

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Despite the growth, TVP says there is a ‘serious tendency toward irrational use’ of capital in the segment. Bitcoin projects accounted for only 2% of total deals last year.

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“The first cryptocurrency has already secured a basic level of monetary reserve for the Internet, and that’s the point. It simply hasn’t gained broad recognition yet,” said Christopher Kalikot, managing director of the firm.

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In his view, projects such as the micropayments network Lightning Network (LN) could give a serious boost to the entire ecosystem. The head of TVP also saw growth potential in several areas of the crypto market, including stablecoins.

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In April, the Lightspark startup by David Marcus presented a platform to connect businesses to the Lightning Network. The project team called the development “the first enterprise-grade entry point to the LN.”