Theta Capital Management Raises Over $175 Million for Fund-of-Funds Targeting Early-Stage Crypto Startups

Crypto investment firm Theta Capital Management has successfully closed a raise of over $175 million for its fund-of-funds, Theta Blockchain Ventures IV, which aims to support institutional investors in early-stage blockchain startups, according to a report by Bloomberg. The fund will specifically target venture capitalists specializing in cryptocurrency, according to Ruud Smets, the company’s managing partner and chief investment officer. Founded in 2001, Theta began focusing on digital assets in 2018 and currently manages approximately $1.2 billion in assets. Recent data from Galaxy Digital indicates that venture capital investments in the crypto sector are on the rise, with a 54% increase to $4.8 billion in the first quarter of this year. Despite the challenges faced by crypto investors in demonstrating tangible returns, Smets emphasizes the competitive edge of “crypto-native” venture firms, which have established a strong foothold in the market. Theta has previously backed notable firms such as Coinfund LLC, Polychain Capital, and Castle Island Ventures, leveraging their specialized experience to navigate the evolving landscape of digital assets.