Theta Capital Management has announced plans to raise $200 million for its latest blockchain funds-of-funds, despite a subdued venture funding landscape in the sector. The new investment vehicle, designated as Theta Blockchain Ventures V, aims to allocate capital to a range of 10 to 15 venture firms that specialize in digital assets. The firm is targeting a net internal rate of return (IRR) of 25%.
Confirming the details of its funding initiative, a representative of Theta Capital noted the company’s commitment to seizing early-stage blockchain opportunities. Founded in 2001 and shifting its focus towards digital assets in 2018, the Amsterdam-based investment firm currently manages approximately $1.2 billion.
Theta Capital has a history of success within its Blockchain Venture series, having launched five previous funds that collectively yielded a notable 32.7% net IRR from January 2018 to December 2024. Its investment portfolio features prominent names in the crypto venture capital space, including Pantera Capital, CoinFund, Polychain Capital, and Dragonfly.
Earlier, in May, Theta completed a $175 million funding round to bolster its blockchain fund-of-funds initiatives. The firm contends that engaging with managers deeply entrenched in blockchain technology can provide a competitive advantage in the market.
Managing Partner and Chief Investment Officer Ruud Smets expressed confident expectations regarding the capabilities of venture capital to capture long-term growth in the crypto sector. He emphasized the importance of focusing on specialized managers who can outperform generalist investors during initial funding rounds. Smets stated, “We’ve always been looking for areas where specialization and active management provide a sustainable edge,” underscoring the firm’s strategic approach.
Despite the ambitious funding plans, the current landscape for crypto venture investing has proven to be difficult this year. Data from Galaxy Digital reveals that only $1.7 billion was allocated to 21 crypto-focused venture funds in the second quarter of 2025, significantly below figures recorded during previous market peaks. However, there was a year-over-year increase in VC investment to $4.8 billion in Q1 2025.
According to PitchBook, a researcher in global capital markets, $6 billion in VC funding was documented during the same timeframe, albeit with a notable decline in the number of deals. This analyst noted a trend where capital is being increasingly directed toward trading, asset management, and crypto financial services, which saw $2.55 billion invested in Q1 2025.
PitchBook also highlighted that infrastructure and development firms secured around $955 million via 30 deals. Senior crypto analyst Robert Le remarked that despite ongoing macroeconomic uncertainties, capital continues to pursue the core utility of crypto technology.
In addition to its funding efforts, Theta Capital is organizing the Legends4Legends blockchain conference, scheduled for October 16 in Amsterdam. This premier event aims to bring together institutional allocators and leading industry experts to navigate the blockchain landscape. Qualified institutions will be able to attend at no cost, with the conference also dedicated to raising funds for the Alternatives4Children charity. The theme for this year’s event will be “Blockchain Goes Mainstream: Stablecoins & Beyond,” focusing on the evolving infrastructure within the blockchain space and the implications of the convergence of artificial intelligence and cryptocurrency.
