Company Overview - Theta Capital Management, based in Amsterdam, is raising $200 million for its new blockchain fund-of-funds, Theta Blockchain Ventures V, which will invest in 10 to 15 specialized crypto venture firms targeting a 25% net internal rate of return [1] - The firm has shifted its focus to digital assets since 2018 and currently manages approximately $1.2 billion [1] Fundraising Context - The fundraising effort occurs amid challenging market conditions, with only $1.7 billion allocated to 21 crypto-focused venture funds in Q2 2025 [2] - Despite the difficulties, Theta recently closed a separate fundraising round of over $170 million [3] Performance Metrics - Theta's previous five funds in the Theta Blockchain Ventures series have achieved a 32.7% net internal rate of return from January 2018 through December 2024 [3] - The firm has invested over $600 million in crypto-native venture capital funds since 2017, positioning itself as one of the largest institutional allocators in the blockchain industry [5] Market Insights - The crypto venture capital sector is facing headwinds, with increased interest in artificial intelligence diverting attention from crypto investments [6] - Despite these challenges, Web3 startups raised $9.6 billion in Q2 2025, indicating selective recovery in certain segments [7] - Infrastructure-focused sectors, such as validator networks and mining operations, have seen the highest median round sizes in recent quarters [7] Strategic Insights - Ruud Smets, Managing Partner and Chief Investment Officer, noted that crypto-native venture firms have a sustainable edge due to their early experience in the market, making it difficult for generalist VCs to compete [4] - The fund-of-funds model allows institutional investors to gain diversified exposure to early-stage blockchain startups through established venture capital intermediaries [4]
Theta Capital Management Launches $200M Blockchain Fund Targeting 10-15 Investments
Yahoo Financeยท2025-09-26 20:29