Theta Capital raises $175M to back early-stage blockchain startups
Theta Capital Management has raised over $175 million for its fund-of-funds, Theta Blockchain Ventures IV, to support early-stage blockchain startups via specialized VC firms. The strategy targets crypto-native VCs with proven success in blockchain innovation, emphasizing the advantage of specialization over generalist investors. Theta, managing approximately $1.2 billion since shifting focus to digital assets in 2018, has previously invested in notable firms like Polychain Capital and CoinFund. Crypto venture capital is rebounding, with VC investment in digital assets rising 54% to $4.8 billion in Q1 2025. Despite a 39.5% drop in deal activity year-over-year, total funding doubled to $6 billion. The majority of investments targeted asset management and trading platforms, with Circle's anticipated IPO potentially reshaping valuation expectations in the sector.
