What constitutes a "bitcoin startup"?

If it's any business that accepts bitcoins as a method of payment, then I guess the answer will be pretty random, because bitcoin will be useful to pretty much any type of business, and doesn't require a tweak of their business model or similar (you don't generalize credit card businesses either, right?). If it's a business that provides vital bitcoin infrastructure, then I guess an exchange, but then again exchanges are the only infrastructure that's really needed. If it's a business whose business model depends on bitcoin's attributes for their success I have no idea, but I think it will take 5-10 years before such a business gets any sort of funding because the amount of people who use bitcoins is still diminutive.

Um, hello  

We already raised a Series A seed round, and working on a second round with Care Capital based in New York

Article:

www.betabeat.com/2011/12/13/brooklyn-based-bitcoin-startup-bitinstant-raises-seed-round/

- Charlie

There are so many unique properties in Bitcoin to exploit. What would it take to get VC funding?

Who needs funding from VC's, when we've already got a bitcoin stock exchange (GLBSE.com)?

Sure right now it's on the small side of funding, but GLBSE is already responsible for dozens of new ventures.

Check this article.
http://bitcoinmedia.com/crowdfunding-gets-some-back/

Were moving away from key based auth in the next release. And if you have anything in your account, give me whatever information you can (addresses for bitcoin deposits, shares held etc.) and I'll transfer them to a new account for you.

Nefario.