“Several investors said the rising cost of regulatory compliance and the threat of the government restricting Bitcoin activity are among the reasons for increased caution. On top of that, some say, few entrepreneurs active in Bitcoin have the experience to be trusted with leading a serious financial technology business.  Between October 2012 and May 2013, six Bitcoin startups raised roughly $11.4 million, according to Dow Jones VentureSource. The largest round went to digital-wallet company Coinbase Inc., which raised $5 million led by Union Square Ventures. Since then, only two deals have come to light.”