In a move that highlights growing optimism around the future of blockchain innovation, Amsterdam-based Theta Capital Management has successfully raised over $175 million for its fourth fund-of-funds vehicle. The fund, dubbed Theta Blockchain Ventures IV, is specifically designed to back early-stage blockchain startups—indirectly—through some of the most respected and specialized crypto venture capital firms in the world.
Speaking to Bloomberg, Ruud Smets, managing partner and chief investment officer at Theta, emphasized the fund’s strategic focus on specialized investment talent. According to Smets, Theta’s edge lies in identifying crypto-native VC managers who’ve consistently outperformed generalists, especially during the early and most volatile funding stages.
“We’ve always been on the lookout for sectors where deep specialization and active portfolio management give you a real, lasting advantage,” Smets explained. “And the way dedicated crypto VCs have grown in experience and network over time makes it increasingly difficult for newcomers or more generalist funds to compete.”
Theta Capital is no stranger to the crypto space. Founded in 2001, the firm pivoted toward digital assets in 2018 and now manages around $1.2 billion in assets. Theta has previously backed renowned investment firms such as Polychain Capital, CoinFund, and Castle Island Ventures—names well-known for spotting blockchain potential before it goes mainstream.
This latest raise comes at a time when sentiment around crypto venture capital is noticeably improving. A recent report from Galaxy Digital highlighted a 54% surge in crypto VC investment during Q1 2025, with total investments climbing to $4.8 billion. This rebound marks a significant turnaround from the sluggish funding environment seen throughout much of the prior year.
PitchBook’s latest numbers tell a similar story, albeit with some nuances. While the total number of crypto VC deals in Q1 2025 dropped nearly 40% compared to the same period last year—405 versus 670—the total funding amount more than doubled. Q1 saw over $6 billion invested, up from $2.6 billion in Q1 2024 and $3 billion in the final quarter of last year. This signals a more selective but higher-confidence investment landscape.
PitchBook’s senior crypto analyst Robert Le offered insight into this trend, noting that capital is increasingly flowing toward core infrastructure. “Despite ongoing macroeconomic uncertainties, investors are still gravitating toward crypto’s fundamental utility layers,” he said.
A closer look at the deal flow reveals that the lion’s share—about $2.55 billion—went into asset management platforms, trading services, and other financial infrastructure. Another $955 million was poured into infrastructure and developer tools, while Web3 startups attracted $231.2 million across 23 deals.
Looking ahead, one potential game-changer in the venture funding narrative could be the long-rumored IPO of Circle, the issuer behind the USDC stablecoin. If the company achieves a valuation north of the expected $4–$5 billion range, analysts believe it could revive enthusiasm across the board—potentially even resetting how late-stage crypto ventures are valued.
PitchBook estimates there’s about a 64% probability that Circle will go public, and if it does so with a strong valuation, it may set a new benchmark reminiscent of Coinbase’s market debut in 2021.
For Theta Capital, the timing appears strategic. By doubling down on crypto-native VCs just as the tide turns in venture funding, the firm is positioning itself—and its investors—at the front lines of blockchain’s next growth chapter.
