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Theta Capital Management, located in Amsterdam, is aiming to raise $200 million for its new blockchain fund-of-funds, which will focus on specialized crypto venture firms.
The newly established fund, named Theta Blockchain Ventures V, plans to invest in 10 to 15 venture firms that concentrate on digital assets, with a target of achieving a 25% net internal rate of return, as indicated in an investor presentation acquired by Bloomberg.
Founded in 2001, Theta redirected its attention to digital assets in 2018 and currently oversees around $1.2 billion in assets.
This fundraising initiative is taking place despite difficult market conditions, with only $1.7 billion allocated to 21 crypto-focused venture funds in Q2 2025, based on data from Galaxy Digital.
How Theta Transformed Crypto Investments Into Billion-Dollar Returns
Recently, Theta completed a separate fundraising round, raising over $170 million.
From its previous five funds in the Theta Blockchain Ventures series, the firm has achieved a 32.7% net internal rate of return from January 2018 to December 2024.
The firm’s portfolio features prominent crypto venture capital firms, including Pantera Capital, CoinFund, Polychain Capital, and Dragonfly Capital.
Ruud Smets, Managing Partner and Chief Investment Officer, previously mentioned to Bloomberg that “crypto-native venture firms have a sustainable advantage beyond merely gaining market exposure.”
He highlighted that “their early lead and expertise have compounded over time, making it challenging for generalist VCs to compete in the initial stages.”
The fund-of-funds structure enables institutional investors to achieve diversified exposure to early-stage blockchain startups through established venture capital intermediaries.
Since 2017, Theta has invested over $600 million in crypto-native venture capital funds, positioning itself as one of the largest institutional allocators within the blockchain sector.
Crypto VC Encounters Challenges, Yet Areas of Growth Emerge
This fundraising initiative is occurring during a tough phase for crypto venture investing, even as token prices have risen throughout 2025.
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Research from Galaxy Digital indicates that heightened interest in artificial intelligence has diverted attention from crypto investments, while spot ETFs and treasury companies are vying for institutional investment capital.
Nonetheless, recent data indicates signs of selective recovery in specific segments, with Web3 startups raising $9.6 billion in Q2 despite a decline in deal counts to multi-year lows.
Web3 startups secured $9.6 billion in venture capital during the second quarter of 2025, marking the second-highest quarterly total on record.#Web3 #Fundinghttps://t.co/0AohwhT2VF
— Cryptonews.com (@cryptonews) August 31, 2025
Infrastructure-oriented sectors, such as validator networks, mining operations, and compute networks, have seen the highest median round sizes in recent quarters.
Data from Outlier Ventures has also revealed that crypto infrastructure startups achieved a median round of $112 million, followed by mining and validation at $83 million.
In contrast, private token sales raised $410 million across just 15 deals in Q2, representing the strongest private performance since 2021, driven by strategic treasury deals and rollup ecosystem investments.
Public token sales, however, experienced an 83% decline from the previous quarter, totaling $134 million, as retail interest diminished.
The United States regained its market leadership, capturing 47.8% of funds and 41.2% of completed deals, while the UK ranked second with nearly 23% of capital allocation.
Maturity is evident.
Later-stage companies attracted 52% of Q2 capital — only the second instance since 2021 that they surpassed early-stage.
Pre-seed deal activity, however, remains robust. pic.twitter.com/2o3L518LQo— Galaxy (@galaxyhq) August 19, 2025
This geographical shift indicates a return to traditional venture centers, following Malta’s brief lead last quarter due to a significant sovereign fund investment.
The overall macro environment continues to exert pressure on crypto venture capital, with rising interest rates and changes in allocator preferences steering institutional flows away from early-stage startup investments toward liquid, regulated instruments.
Many institutional investors are now pursuing crypto exposure through spot exchange-traded funds and digital asset treasury companies instead of venture capital commitments.
Despite these obstacles, Theta has demonstrated ongoing institutional interest in specialized crypto investment strategies, and its new fundraising, if successful, would represent the firm’s sixth fund under the Blockchain Ventures series.
The fund launch also coincides with other significant fundraising activities in the sector, including Maven 11’s goal of $100 million for its third crypto venture fund and Pure Crypto’s preparations for a fourth fund following nearly 1,000% returns since 2018.
The post Theta Capital Management Launches $200M Blockchain Fund Targeting 10-15 Investments appeared first on Cryptonews.
