Theta Capital Targets $200M for Blockchain Fund-of-Funds Amid Subdued Venture Climate

Theta Capital Management is raising $200 million for its latest blockchain-focused fund-of-funds, THETA Blockchain Ventures V. The Amsterdam-based firm aims to capitalize on early-stage opportunities despite a broader slowdown in crypto venture funding. The vehicle will allocate capital across 10-15 digital asset venture firms, targeting a 25% net internal rate of return.

The firm has a proven track record in crypto investments, with its previous five Blockchain Venture series funds delivering 32.7% net IRR since 2018. Its portfolio includes prominent crypto VCs like Pantera Capital, Polychain Capital, and Dragonfly. THETA closed a $175 million round for similar strategies in May.

Founded in 2001, Theta shifted to digital assets in 2018 and now manages $1.2 billion. The firm believes its focus on specialized blockchain managers creates market differentiation. "Deep sector expertise beats broad exposure" appears to be their investment MANTRA as institutional interest in crypto infrastructure grows.