Theta Capital raises $175 million to fund early blockchain startups

Amsterdam-based Theta Capital Management has secured over $175 million for its newest fund-of-funds, Theta Blockchain Ventures IV, aimed at supporting early-stage blockchain startups through specialised crypto venture capital firms.

Ruud Smets, Theta’s managing partner and chief investment officer, told Bloomberg that the fund will invest in crypto-native VC firms with proven experience in backing blockchain innovation.

Smets emphasised that the strategy targets specialist managers who tend to outperform generalist investors in early funding rounds.

“We’ve always been looking for areas where specialisation and active management provide a sustainable edge,” Smets said.

He added that the expertise and positioning of dedicated crypto VCs have “compounded over time,” creating barriers for less focused investors trying to enter the space.

Founded in 2001, Theta shifted its focus to digital assets in 2018 and currently manages about $1.2 billion.

The firm has previously backed crypto investment firms such as Polychain Capital, CoinFund, and Castle Island Ventures.

The fund’s closing coincides with a rebound in crypto venture capital investment.

According to Galaxy Digital, VC investment in digital assets rose 54% in the first quarter of 2025 to $4.8 billion, signaling renewed confidence after a prolonged downturn.

A PitchBook report showed that while the number of VC deals dropped 39.5% year-over-year to 405 in Q1 2025, total funding more than doubled to $6 billion compared to $2.6 billion in Q1 2024.

PitchBook’s senior crypto analyst Robert Le noted that despite macroeconomic uncertainty, “capital continued to seek crypto’s core utility rails.”

Most investment—about $2.55 billion across 16 deals—went to asset management, trading platforms, and crypto financial services firms.

Infrastructure and development companies raised nearly $955 million across 30 deals, while Web3-focused firms saw 23 deals totaling $231.2 million.

PitchBook also highlighted Circle’s anticipated IPO as a potential major event for crypto equity pricing, estimating a 64% chance it will go public with a valuation above $4 billion.