Theta Capital Secures $175M for New Blockchain Fund Amid Rebound in Crypto VC Investment

The new fund, Theta Blockchain Ventures IV, will deploy capital into specialized crypto-native VC firms with a strong track record of identifying and supporting blockchain innovation, according to managing partner and CIO Ruud Smets, who spoke to Bloomberg.

Smets emphasized that the fund’s strategy is built around tapping the expertise of crypto-focused managers who consistently outperform generalist investors in early-stage funding rounds.

“We’ve always been looking for areas where specialization and active management provide a sustainable edge,”

he said, noting that the depth and experience of dedicated crypto VCs now present formidable barriers to entry for less specialized players.

Theta, founded in 2001, pivoted towards digital assets in 2018 and currently manages around $1.2 billion. The firm has previously invested in top-tier crypto VCs including Polychain Capital, CoinFund, and Castle Island Ventures.

The fund launch comes as venture capital interest in crypto begins to rebound. Data from Galaxy Digital reveals that VC investment in digital assets surged 54% in Q1 2025 to $4.8 billion — a sign of renewed optimism following a market lull.

Meanwhile, PitchBook data confirms this momentum. Although the number of completed crypto VC deals fell to 405 in Q1 — down 39.5% from 670 a year earlier, the total capital raised hit $6 billion, more than double the $2.6 billion recorded in Q1 2024. It also reflected a significant rise from the $3 billion raised in the previous quarter.

Notably, large capital inflows were concentrated in asset management, trading platforms, and financial services, which attracted approximately $2.55 billion across just 16 deals. Infrastructure and development startups followed with nearly $955 million across 30 deals.

Investor anticipation is also building around Circle’s expected IPO, which PitchBook says could become the most pivotal crypto equity event since Coinbase’s 2021 listing. If Circle secures a valuation exceeding the rumoured $4–5 billion range.

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