Theta Capital Management’s New Blockchain Fund
Theta Capital Management, based in Amsterdam, is looking to raise $200 million for its latest blockchain fund, which aims to support focused crypto ventures.
Documents reviewed by Bloomberg reveal that this new initiative, dubbed Theta Blockchain Ventures V, plans to invest in 10 to 15 companies specializing in digital assets.
Founded in 2001, Theta shifted gears toward digital assets in 2018 and currently oversees about $1.2 billion in assets.
In the second quarter of 2025, only $1.7 billion was invested in the crypto space, highlighting some of the challenges the industry is facing.
Recently, Theta concluded another funding round, raising over $170 million.
With five previous funds in the Theta Blockchain Ventures series, the firm has managed to yield a net internal rate of return of 32.7% from January 2018 through December 2024.
The portfolio features notable crypto venture firms like Pantera Capital, Coinfund, PolyChain Capital, and Dragonfly Capital.
Ruud Smets, managing partner and chief investment officer, has stated that ventures in cryptocurrency not only provide market exposure but also carry a sustainable edge.
He pointed out that the early advantages and experiences of these ventures have diminished over time, complicating competition for generalist venture capitalists.
The fund of funds structure grants institutional investors diverse exposure to early-stage blockchain startups via established venture capital channels.
Since 2017, Theta has invested more than $600 million into Crypto-Native Venture Capital Funds, positioning itself as a key player in the blockchain sector.
This fundraising effort is set against a backdrop of challenges in crypto venture investing, despite a surge in token prices throughout 2025.
Galaxy Digital Research indicates that while there’s growing interest in artificial intelligence, this has pulled attention and funds away from crypto investments, making competition with spot ETFs and financial firms fiercer.
However, some data hints at selective recovery in specific segments. For instance, Web3 startups raised $9.6 billion in the second quarter, even as transaction counts hit multi-year lows.
Recent quarters have seen infrastructure sectors, like validator networks and mining operations, attracting the largest median round sizes.
From data gathered, it’s noted that Crypto Infrastructure startups managed to secure $112 million in central rounds, with mining and verification following closely at $83 million.
On another note, private token sales have shown promising strength, raising $410 million across just 15 transactions in the second quarter—the best private performance since 2021.
Conversely, public token sales saw a decline to $134 million, which is an 83% drop from the previous quarter as retail enthusiasm waned.
The US regained significant market share, accounting for 47.8% of funds and 41.2% of closed transactions, while the UK followed with nearly 23% of capital allocation.
This shift seems to represent a return to more traditional venture hubs after Malta’s brief lead, concentrating on larger sovereign fund investments.
Simultaneously, the broader economic climate continues to challenge crypto venture capital, with rising interest rates and fluctuating allocator preferences driving institutional interest toward liquid regulatory instruments instead of early-stage startups.
Today, many institutional investors appear to be more inclined to explore exposure to cryptocurrency through spot exchange-traded funds and digital asset financing, avoiding venture commitments.
Despite these obstacles, Theta seems to maintain steady institutional interest in specialized crypto investment strategies. If all goes well, this new fundraising effort will mark the firm’s sixth fund under the Blockchain Ventures series.
This launch aligns with other notable fundraising activities in the crypto area, including Maven 11’s attempt to secure $100 million for its third crypto venture fund.
