Bitflow Labs Raises $1.3 Million in Pre-Seed Funding to Solve Fractured Liquidity Across the Bitcoin Ecosystem

BitFlow Finance
4 min readJan 25, 2024

We’ve got some thrilling news to share with our Bitflow community! Our team at Bitflow Labs, Inc. is buzzing with excitement as we announce the successful closure of our $1.3 million pre-seed funding round to continue building critical infrastructure for Bitcoin DeFi.

The round was led by Portal Ventures, and alongside a consortium of visionary investors including Bitcoin Frontier Fund, Bitcoin Startup Lab, Big Brain Holdings, Newman Capital, Genblock Capital, Tykhe Block Ventures, Insignius Capital, Side Door Ventures, Coindex Capital, Marin Ventures, SkyVision Capital, Spicy Capital, and a group of strategic angel investors, among others.

Bringing Curve to Bitcoin

Bitflow is the first decentralized exchange that solves fractured liquidity across the Bitcoin ecosystem, offering a user-friendly platform for trading BTC, Stablecoins, Stacks tokens, BRC20s, and more.

Bitflow’s protocol design is inspired by the most resilient and popular decentralized exchanges on Ethereum, with one important difference: the capital efficient trading infrastructure is built on Bitcoin rails. With strategic wallet partnerships, including Hiro (Leather), Xverse, and Asigna, and by leveraging technologies like PSBTs, Atomic Swaps, AMMs, and Layer-2 solutions such as Stacks, Bitflow provides efficient decentralized swaps and sustainable BTC yields.

Bitcoin is experiencing a renaissance, and we’ve been actively investing into infrastructure to power this. [Co-founders] Dylan and Diego quickly impressed us with their product insights, early traction, and long-term vision to win a TAM that is 3x larger than Ethereum. We believe Bitflow will be critical in powering capital efficiency across the Bitcoin ecosystem. — Catrina Wang, Investment Partner at Portal Ventures

Organic and Sustainable BTC Yield

Bitflow is ambitiously committed to building a sustainable DeFi protocol that is designed to last as long as Bitcoin. The organic BTC yield, derived from trading activity on Bitcoin and Bitcoin Layers, can be claimed proportionally by liquidity providers.

By concentrating on Bitcoin, Stable Swaps, BTC Backed stablecoins, sBTC, and decentralized liquidity pools, Bitflow DeFi builders and users seeking Bitcoin yield opportunities with a unique spectrum of tools. This dedication emphasizes Bitflow’s leading role in developing innovative Bitcoin-based DeFi applications.

Advancing Bitcoin DeFi

The recent funding will accelerate Bitflow’s initiatives on the frontier of Bitcoin DeFi — refining its infrastructure, growing its team, improving the user experience, and pioneering new applications within the Bitcoin ecosystem. This fundraise strengthens what used to be a contrarian take: 2024 is going to be an exciting year for people building on Bitcoin.

Co-Founder Dylan Floyd expresses his enthusiasm: “Bitflow has seen some amazing organic growth during the Private Beta phase, with the TVL rocketing from $30K to nearly $4M in less than a month. There’s an appetite to put Bitcoin to work in DeFi as a productive asset, and building through the bear has prepared us for the upcoming bull market and many more cycles down the road. The Bitflow protocol not only empowers traders to arbitrage between different flavors of Bitcoin, but also generates tangible BTC yield on Bitcoin holdings.”

As we gear up for our public launch, we’re at an exciting turning point — not just for us, but for decentralized Bitcoin trading as a whole. With the buzz around Bitcoin ETFs and the upcoming halving, this community has a lot of momentum.

Anthony Cheng from Newman Capital highlights the innovative strides made by our protocol: “Bitflow represents a significant leap in integrating traditional Bitcoin with DeFi. It aligns with our vision of modernizing crypto investments to secure & develop innovative financial solutions.”

This endorsement reflects Bitflow’s vision, with its real-yield DEX designed for Bitcoiners.

Kevin Williams, an Investment Partner at the Bitcoin Frontier Fund, had this to say: “We at Bitcoin Frontier Fund identified Bitflow’s extraordinary potential from the get-go. Witnessing Dylan and Diego’s consistent excellence in execution and the remarkable growth since their mainnet debut has been thrilling. As Bitflow’s first investor, we’re proud to support their journey towards becoming a leading DeFi application in the Bitcoin ecosystem.”

We’re hitting a major turning point in decentralized Bitcoin trading, and it’s a big deal for us here at Bitflow. We’re all about boosting the DeFi ecosystem, and with this latest milestone, we’re gearing up for some serious growth and exciting times ahead.

Learn more at Bitflow’s Website.



BitFlow Finance

A decentralized stable swap protocol that generates rewards for liquidity providers & native Bitcoin holders