Quick take:
- The fund focuses on specialist managers who can outperform generalist investors in the earliest funding rounds.
- Tether has previously invested in crypto-native VC firms including Polychain Capital and CoinFund.
- Founded in 2001 and boasting about $1.2 billion in assets under management, the company switched focus to digital assets in 2018.
Theta Capital Management has launched the Blockchain Ventures Fund IV with $175 million in funding. The fund will be funnelled through specialised crypto-native VCs with a track record of backing blockchain projects.
Founded in 2001 and boasting about $1.2 billion in assets under management, the company switched focus to digital assets in 2018.
Rather than directly investing in crypto startups, Theta Capital prefers to invest through other crypto-native VCs. The company previously invested through Polychain Capital and CoinFund. The new fund focuses on specialist managers who can outperform generalist investors in the earliest funding rounds.
Commenting on the announcement, Theta’s managing partner and chief investment officer Ruud Smets told Bloomberg: “We’ve always been looking for areas where specialization and active management provide a sustainable edge,” adding that the experience and positioning of dedicated crypto VCs “has compounded over time,” thus making it more difficult for less focused investors trying to enter the space.
The announcement comes amid the return of a bullish crypto market, as demonstrated by the Bitcoin price’s recent rise toward new all-time highs.
Venture capital funding has also returned to the industry with Web3 startups securing more than $4.5 billion in the first quarter of 2025.
The industry is also experiencing increased consolidation and cross-market M&As involving native crypto companies and traditional fintechs.
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