Ego Death Capital, a venture capital firm, has successfully raised $100 million for its second fund, which focuses on supporting software startups that utilize the Bitcoin protocol.
Key highlights include:
- Ego Death Capital has garnered $100 million to invest in Bitcoin-oriented software startups.
- The firm is concentrating on companies that generate revenue and avoids engaging in token speculation.
- Its investment strategy revolves around scaling genuine businesses built on the Bitcoin protocol.
The fund targets a niche in Series A funding for enterprises that are creating practical applications of Bitcoin, as stated by founding partner Nico Lechuga during an interview with Axios. Lechuga emphasized, “We’re in Bitcoin, investing in true companies solving real-world problems.”
Ego Death focuses on Profitable Bitcoin Startups
Unlike other cryptocurrency investment firms that are often lured by token speculation, Ego Death Capital prioritizes startups that are already generating revenue and cash flow, frequently in the form of Bitcoin itself. The firm is particularly interested in businesses earning between $1 million and $3 million, highlighting that their growth is generally constrained by capital rather than market demand.
While the primary focus of the fund is on Series A funding, a portion is earmarked for early-stage seed investments that demonstrate significant potential. The firm’s backers consist largely of family offices that are currently invested in Bitcoin and seek to enhance the ecosystem connected to it.
Lechuga pointed out that there has been a notable absence of lead investors for Series A rounds in this sector, a gap that Ego Death Capital aims to fill.
BREAKING: #BITCOIN-ONLY VENTURE FIRM EGO DEATH CAPITAL JUST RAISED $100 MILLION TO INVEST IN STARTUPS
BTC ONLY IS WINNING pic.twitter.com/zK2FT6TmwE
— The Bitcoin Historian (@pete_rizzo_) July 8, 2025
The firm has already made several investments, including Roxom, a Bitcoin-native exchange; Relai, a savings application; and Breez, a payments platform utilizing the Lightning network. Ego Death Capital deliberately steers clear of hardware startups, mining operations, and Bitcoin infrastructure projects, instead choosing to concentrate on scalable software ventures.
Differentiating itself from many crypto firms, Ego Death Capital intentionally avoids exposure to tokens. Lechuga argues that building sustainable Bitcoin-based businesses can yield better returns than merely holding Bitcoin, especially when those businesses are counter-generating revenue in BTC.
“We see Bitcoin as the only decentralized and secure base to be able to build on,” he stated.
With this new fund, Ego Death Capital is positioning itself for a more developed, application-centric Bitcoin economy, founded on actual business principles rather than speculative trends.
Concerns Rise Over Viability of Bitcoin Treasury Approach
This sentiment was echoed by Matthew Sigel, head of digital asset research at VanEck, who has expressed reservations about the Bitcoin treasury strategies being implemented by certain publicly traded companies. Sigel specifically criticized the use of at-the-market (ATM) share issuance programs, noting that they could be dilutive if a company’s stock price closely approaches its Bitcoin net asset value (NAV).
Additonally, Pomerantz LLP, a New York law firm, has initiated a class action lawsuit against Michael Saylor’s strategy, charging the Bitcoin-centered firm with misleading investors regarding the profitability and risks associated with its cryptocurrency investment approach.
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