Archetype Raises $100M Fund to Back Early-Stage Blockchain Startups

TLDR

• Crypto venture capital firm Archetype closes $100M+ fund backed by institutional investors including pensions, endowments, and sovereign wealth funds
• The fund targets early-stage blockchain startups building onchain infrastructure, stablecoins, DeFi, and real-world asset tokenization projects
• Archetype’s portfolio includes successful exits like Privy (acquired by Stripe) and US Bitcoin Corp (merged with Hut 8)
• The firm currently manages around $350M in assets with focused approach on high-conviction investments
• Crypto VC funding reached $10.03 billion in Q2 2025, the highest level since Q1 2022

New York-based crypto venture capital firm Archetype announced it has closed over $100 million in capital commitments for its third fund, Archetype III. The fund received backing from institutional investors including pensions, academic endowments, funds of funds, sovereign wealth funds and family offices.

The firm currently manages around $350 million in assets across its investment portfolio. Archetype chose to maintain the $100 million size strategically to stay focused and selective with investments.

Archetype targets early-stage startups building onchain infrastructure and decentralized finance applications. The capital will support projects working on stablecoins, payment solutions, onchain social networks, and decentralized physical infrastructure networks.

The fund will also back mobile apps built on crypto rails and crypto AI projects. Real-world asset tokenization represents another key focus area for the new investments.

Proven Track Record of Successful Exits

Archetype has demonstrated success with previous investments that generated strong returns. Privy, a crypto wallet startup in the firm’s portfolio, was acquired by payments giant Stripe earlier this year.

Another portfolio company, US Bitcoin Corp, completed a merger with mining company Hut 8. This deal brought the company into a joint venture connected to Eric Trump’s American Bitcoin project.

The firm’s existing portfolio includes investments in Monad, Farcaster, Relay and Ritual. These companies span various sectors of the blockchain ecosystem from infrastructure to applications.

Archetype holds stakes in major cryptocurrencies including Solana and Ethereum. The diversified approach helps balance risk across different blockchain platforms and projects.

Selective Investment Environment

Crypto venture activity reached its lowest deal count in over four years during May 2025. Only 62 funding rounds completed during that month, though they totaled more than $909 million.

This selectivity has shifted investor focus toward proven business models rather than speculative bets. Companies are moving away from the pre-seed investments and memecoin trends of the 2021 bull market cycle.

Bitcoin-focused projects gained increased attention from investors during the first half of 2025. The Bitcoin DeFi sector raised $175 million across 32 deals in that period.

Tokenization and stablecoin infrastructure attracted significant venture capital funding. Stable received $28 million for its Tether-focused blockchain to expand USDt payments globally.

French fintech Spiko raised $22 million for tokenized money market funds. Inveniam Capital invested $20 million in layer-1 blockchain Mantra to support institutional real-world assets.

Venture capital investment in crypto totaled $10.03 billion during the second quarter of 2025. This represents the highest quarterly funding level since Q1 2022 when investment reached $16.64 billion.

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