Amsterdam-based Theta Capital Management is raising $200 million for its latest blockchain fund targeting specialized crypto venture firms. The fund, Theta Blockchain Ventures V, aims for a 25% net internal rate of return. The firm, managing $1.2 billion, has delivered a 32.7% return from 2018 to 2024 across its funds.

Despite market challenges, fundraising efforts for the fund-of-funds model are ongoing. Theta has invested over $600 million in crypto-native venture capital funds since 2017. The shift in investor interest to AI has impacted crypto investing, but some segments show selective recovery, with Web3 startups raising $9.6 billion in Q2.

Infrastructure-focused sectors have seen strong median round sizes recently, with validator networks and mining operations attracting significant investments. Private token sales in Q2 marked the strongest performance since 2021, while public token sales fell 83%. The US regained market dominance in funds and deals, signaling a return to traditional venture hubs.

The macro environment challenges crypto venture capital with rising interest rates. Institutional investors are favoring spot ETFs and digital asset treasury companies over early-stage startup investments. Despite these challenges, Theta’s continued institutional interest in specialized crypto strategies is evident in its fundraising efforts for the sixth fund in the Blockchain Ventures series.

Read more at Yahoo Finance: Theta Capital Management Launches $200M Blockchain Fund Targeting 10-15 Investments