Amsterdam-based Theta Capital Management has raised over $175 million for its latest fund-of-funds, aimed at supporting early-stage blockchain startups through specialized venture capital (VC) firms.<\/p>\n
The new vehicle, Theta Blockchain Ventures IV, will channel capital into crypto-native VC firms with a track record in backing blockchain innovation, Theta\u2019s managing partner and chief investment officer Ruud Smets told<\/a> Bloomberg.<\/p>\n Smets said the strategy focuses on specialist managers who can outperform generalist investors in the earliest funding rounds.<\/p>\n \u201cWe\u2019ve always been looking for areas where specialization and active management provide a sustainable edge,\u201d Smets noted. He said that the experience and positioning of dedicated crypto VCs \u201chas compounded over time,\u201d creating barriers for less focused investors trying to enter the space.<\/p>\n Founded in 2001, Theta shifted its focus to digital assets in 2018 and now manages approximately $1.2 billion. The firm has previously backed leading crypto investment names such as Polychain Capital, CoinFund and Castle Island Ventures.<\/p>\n Source: Theta Capital<\/em><\/p>\n Related: <\/strong><\/em>AI takes nearly 60% of global venture capital dollars in Q1<\/strong><\/em><\/a><\/p>\n The fund\u2019s close comes as crypto venture capital begins to rebound. According to Galaxy Digital, VC investment in digital assets rose<\/a> 54% in the first quarter 2025 to $4.8 billion, signaling renewed confidence in the sector after a prolonged downturn.<\/p>\n Another report from PitchBook revealed that crypto venture capital funding surged<\/a> in early 2025, even as deal activity declined.<\/p>\n The report showed that 405 VC deals were completed in Q1 2025, a 39.5% drop from the 670 recorded in the same period last year. However, that\u2019s a modest uptick from the 372 deals seen in Q4 2024.<\/p>\n Despite fewer deals, total funding more than doubled year-over-year, reaching $6 billion in Q1 compared to $2.6 billion in Q1 2024 and doubling from the previous quarter\u2019s $3 billion.<\/p>\n PitchBook\u2019s senior crypto analyst Robert Le noted that even amid macroeconomic uncertainty, \u201ccapital continued to seek crypto\u2019s core utility rails.\u201d<\/p>\n The bulk of the investment \u2014 around $2.55 billion across just 16 deals \u2014 went into companies in asset management, trading platforms and crypto financial services. Infrastructure and development firms followed, raising nearly $955 million across 30 deals.<\/p>\n Web3-focused companies saw the third-most deals and funding, at 23 and $231.2 million, respectively. Source: PitchBook.<\/em><\/p>\n Related: <\/strong><\/em>Crypto startups scaring away VCs with 80x valuations: 10T Holdings<\/strong><\/em><\/a><\/p>\nCrypto VC deals rebound<\/h2>\n
Circle IPO could be crypto\u2019s next benchmark<\/h2>\n