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crypto.news 2025-05-21 07:46:11

Theta Capital bags $175m to back Coinfund, Polychain and other crypto VCs

Dutch investment firm Theta Capital closed a $175 million raise to back crypto-specialist VCs through its latest fund-of-funds. Theta Capital Management has pulled in over $175 million for a new fund-of-funds designed to help institutional investors get exposure to early-stage blockchain startups by backing some of the industry’s top crypto venture firms. The new fund, dubbed Theta Blockchain Ventures IV, will invest in venture capital firms that specialize in crypto, Bloomberg has learned , referring to Ruud Smets, the company’s managing partner and chief investment officer. Founded in 2001, the Netherlands-based firm began focusing on cryptocurrencies in 2018 and now manages around $1.2 billion in assets. Theta has previously backed firms like Coinfund, Polychain Capital, and Castle Island Ventures. It’s still unclear though how Theta plans to allocate the newly raised capital. You might also like: Crypto VC funding: Gnosis, HQ lead with $14.95m acquisition; Perpl raises $9.25m The raise comes as crypto venture capital activity shows signs of recovery. According to a May 14 report by PitchBook, VC deal value in Q1 rose to $6 billion, more than double the $2.6 billion seen a year ago. However, the number of deals fell to 405 from 670 over the same period. PitchBook’s senior crypto analyst Robert Le said the $1.4 billion Bybit theft , which he described as the first and only “10-digit hack in history,” served as a stark reminder of the operational risks still present in the industry. He suggested the incident could drive greater institutional demand for real-time proof-of-reserve tools, improved custody systems, and middleware that simplifies key management. Le also said startups working on these areas might find a more favorable funding environment, even amid a broader reset in valuations. Despite Bitcoin hitting a record high of $100,000 in Q4 2024, venture capital activity in crypto startups remained flat , with VC deal size down nearly 90% since 2018. Read more: VC funding model fails web3 projects | Opinion

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