Theta Capital Management is seeking $200 million in fresh capital for its newest blockchain-focused fund-of-funds. The firm stated it’s aiming to capitalize on emerging opportunities within the blockchain sector, even as venture funding activity in the space remains relatively muted.
According to information released by the company, Theta Blockchain Ventures V, their latest investment vehicle, plans to allocate its capital across 10 to 15 venture capital firms that specialize in digital assets. Theta Capital also has a target of achieving a 25% net internal rate of return (IRR) on these investments.
Theta Continues its Blockchain Venture Series
Sources at Theta Capital have verified plans to secure $200 million in funding. This Amsterdam-based investment business, founded in 2001, strategically shifted its focus towards digital assets starting in 2018. The firm currently oversees approximately $1.2 billion in assets.
Previously, Theta Capital launched five funds within the Theta Blockchain Venture series. These funds achieved a net IRR of 32.7% between January 2018 and December 2024. The investment manager’s portfolio comprises well-known crypto venture capital firms, including names like Pantera Capital, CoinFund, Polychain Capital, and Dragonfly.
In May, Theta concluded a $175 million funding round to bolster its blockchain fund-of-funds initiatives. The firm believes its competitive advantage lies in focusing on fund managers deeply entrenched in blockchain technology.
Ruud Smets, Managing Partner and Chief Investment Officer at Theta Capital, believes venture capital is the prime asset class for capturing long-term gains in the crypto space, particularly in the initial funding phases. He emphasized that Theta Capital prioritizes specialized managers who demonstrate superior performance compared to generalist investors during these early stages.
“We have consistently sought areas where specialized knowledge and active management deliver a lasting advantage.”
– Ruud Smets, Managing Partner and Chief Investment Officer at Theta Capital.
Smets further highlighted that the experience and market positioning of dedicated crypto VCs have grown significantly, creating obstacles for less specialized investors attempting to enter the sector.
Despite Theta’s new funding push, the crypto venture investment landscape has presented challenges, especially this year. Data indicates that only $1.7 billion was invested across 21 crypto-specific venture funds in the second quarter of 2025. This figure is substantially lower than levels seen during previous market booms. However, Q1 2025 witnessed a 54% year-over-year increase in VC investment, reaching $4.8 billion.
Other industry reports noted $6 billion in venture capital funding during the same timeframe, despite a 39.5% decrease in funding volume compared to the 670 deals recorded in the prior year. Market analysts suggest that capital is increasingly being directed towards trading platforms, asset management solutions, and crypto-related financial services, with $2.55 billion allocated to 16 deals in Q1 2025.
Infrastructure and development companies raised approximately $955 million across 30 deals during this period. Experts have observed that despite current macroeconomic uncertainties, capital continues to be channeled towards the core infrastructure supporting cryptocurrency technologies.
Increased interest in artificial intelligence has also drawn some attention away from crypto investments. This shift has occurred as spot ETFs and treasury companies now compete for institutional investment dollars. If successful, Theta’s latest initiative would establish its sixth fund in the Blockchain Venture series.
Theta Capital Announces Legends4Legends Blockchain Conference
Theta is organizing its flagship blockchain conference for institutional investors, the Legends4Legends charitable event, on October 16th in Amsterdam. The event will feature a full-day program with leading experts to help institutional investors navigate the evolving blockchain industry.
Qualified institutional attendees will be admitted free of charge. The conference also seeks to raise funds through donations benefiting the Alternatives4Children charity. The central theme of the conference will be ‘Blockchain Goes Mainstream: Stablecoins & Beyond’.
Theta plans to examine crucial developments in the blockchain realm, including the growth of blockchain-native financial infrastructure, with stablecoins serving as the foundation for global digital payment solutions. The event will also explore the convergence of AI and crypto, among other key topics.
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