Theta Capital Secures $175M to Back Early-Stage Blockchain Startups Through Leading Crypto VC Firms

Amsterdam-based investment firm Theta Capital Management has closed a $175 million fund-of-funds focused on supporting early-stage blockchain startups. The new vehicle, Theta Blockchain Ventures IV, will allocate capital through specialized crypto-native venture capital firms known for backing blockchain innovation at its earliest stages.

Theta's Managing Partner and Chief Investment Officer, Ruud Smets, emphasized that the fund targets managers with deep domain expertise who are better positioned than generalist investors to identify and capitalize on early blockchain opportunities.

“We’ve always sought areas where specialization and active management provide a sustainable edge,” said Smets. He noted that dedicated crypto venture capital firms have built compounding advantages over time, creating high barriers for newcomers to compete effectively.

Source: Theta Capital

Founded in 2001, Theta Capital pivoted to focus on digital assets in 2018 and now manages approximately $1.2 billion in assets. The firm has previously invested in prominent crypto VC names such as Polychain Capital, CoinFund, and Castle Island Ventures.

Crypto Venture Capital Rebounds in 2025

Theta’s fund launch coincides with a broader rebound in crypto venture capital. According to Galaxy Digital, VC investment in digital assets rose 54% in Q1 2025, reaching $4.8 billion — a notable recovery after a prolonged bear market.

Data from PitchBook further highlighted the shift. Although overall deal activity slowed — with 405 VC deals in Q1 2025, down from 670 in the same period last year — the total capital raised more than doubled year-over-year to $6 billion, up from $2.6 billion in Q1 2024 and $3 billion in Q4 2024.

PitchBook senior crypto analyst Robert Le pointed out that, despite macroeconomic challenges, investors remain focused on crypto’s foundational infrastructure. Roughly $2.55 billion was funneled into just 16 deals in sectors such as asset management, trading platforms, and financial services. Another $955 million went into infrastructure and development firms across 30 deals.

Web3-focused companies saw the third-most deals and funding, at 23 and $231.2 million, respectively. Source: PitchBook.

Circle IPO May Set a New Benchmark for Crypto

PitchBook also flagged the upcoming Circle IPO as a potential watershed moment for the industry. If Circle achieves a valuation above the estimated $4 to $5 billion, it could attract new late-stage capital and recalibrate valuations across the broader crypto payments and infrastructure landscape.

With $1.18 billion in VC funding raised to date, PitchBook estimates a 64% probability that Circle will successfully go public, making it the most significant crypto equity event since Coinbase’s 2021 debut.