Bitcoin-focused VC Ego Death Capital closes $100 million second fund

Ego Death Capital, a venture firm focused on the Bitcoin ecosystem, has closed its second fund at $100 million, doubling down on its thesis of backing early-stage startups building on the Bitcoin blockchain — a niche focus within the broader crypto venture landscape.

The close comes about 18 months after Ego Death Capital first announced plans to raise the fund in January 2024. Fund II will focus on leading Series A rounds, with initial checks ranging from $3 million to $8 million, targeting companies that build on Bitcoin and its emerging application layers, including the Lightning Network, Fedimint, and Discreet Log Contracts.

For a growing set of crypto VCs, Bitcoin has become more than just a store of value. As The Block previously reported, investors are increasingly backing startups building on Bitcoin’s emerging layers — from Lightning to rollups — seeing the protocol as a secure, battle-tested base for real-world applications.

“We’re investing in businesses that treat Bitcoin not as a trade, but as infrastructure — something to build on, not bet on,” said Lyn Alden, general partner at Ego Death Capital.

The firm is targeting what it sees as a gap in Series A funding for Bitcoin-focused startups, where founders often struggle to find lead investors with both technical expertise and long-term commitment. Its partners say they are backing companies with working products and early traction, rather than speculative projects chasing short-term gains.

Fund II has already invested in three companies: Relai, a Swiss bitcoin brokerage; LN Markets, a derivatives trading platform built on the Lightning Network; and Roxom, which is building a global trading system on Bitcoin.

Ego Death Capital launched in 2022. Its first fund raised $25.2 million, along with a $7.5 million special purpose vehicle.

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