TLDR
- Archetype closes $100M+ third fund backed by institutional investors including pensions and sovereign wealth funds
- Fund targets early-stage blockchain startups in onchain infrastructure, stablecoins, and real-world asset tokenization
- Portfolio includes successful exits: Privy acquired by Stripe, US Bitcoin Corp merged with Hut 8
- Firm manages $350M total assets with selective, high-conviction investment approach
- Crypto VC funding hit $10.03B in Q2 2025, highest since Q1 2022
Crypto venture capital firm Archetype has successfully closed over $100 million for its third investment fund, marking a return of institutional confidence in blockchain technology. The New York-based firm secured backing from major institutional players including pension funds, academic endowments, sovereign wealth funds, and family offices.
The fund closure comes as crypto venture capital shows signs of recovery after a difficult period. Total crypto VC investment reached $10.03 billion in the second quarter of 2025, representing the highest quarterly funding since early 2022.
Archetype III will focus exclusively on early-stage blockchain startups building practical applications. The fund targets companies developing onchain infrastructure, stablecoins, decentralized finance protocols, and real-world asset tokenization platforms.
“Running a concentrated $100M fund lets us be extremely selective and high-conviction with each team,” said Ash Egan, founder and general partner at Archetype. The firm deliberately chose to maintain this fund size to ensure focused investment decisions.
Proven Investment Track Record Attracts Capital
Archetype’s success with previous investments helped secure institutional backing for the new fund. The firm’s portfolio company Privy, a crypto wallet startup, was acquired by payments giant Stripe earlier in 2025, delivering strong returns to investors.
Another portfolio success involved US Bitcoin Corp, which completed a strategic merger with mining company Hut 8. This transaction connected the company to Eric Trump’s American Bitcoin project, creating additional value for stakeholders.
The firm currently manages approximately $350 million in total assets across its investment portfolio. Archetype holds positions in major blockchain projects including Monad, Farcaster, Relay, and Ritual, spanning infrastructure and application development.
The investment strategy includes direct holdings in leading cryptocurrencies like Solana and Ethereum. This diversified approach helps balance risk across different blockchain ecosystems and development stages.
Market Conditions Drive Selective Funding Approach
The crypto venture capital landscape has become increasingly selective following market volatility. Deal activity dropped to four-year lows in May 2025, with only 62 funding rounds completed despite raising over $909 million total.
Investors now prioritize proven business models over speculative ventures. This shift moves away from the pre-seed betting and memecoin speculation that characterized the 2021 bull market cycle.
Bitcoin-focused projects have gained particular traction with institutional investors. The Bitcoin DeFi sector alone raised $175 million across 32 deals in the first half of 2025, demonstrating growing confidence in Bitcoin-based financial applications.
Tokenization and stablecoin infrastructure continue attracting substantial investment. Recent deals include $28 million for Stable’s Tether-focused blockchain expansion and $22 million for Spiko’s tokenized money market funds.
Strategic Focus on Real-World Applications
Archetype’s investment thesis centers on blockchain applications that can compete directly with traditional web services. The fund prioritizes startups building consumer-focused products that deliver real utility beyond speculation.
Target areas include payment solutions, onchain social networks, decentralized physical infrastructure networks, and mobile applications built on crypto infrastructure. The firm also actively invests in crypto AI projects that combine blockchain technology with artificial intelligence.
Egan emphasized the firm’s hands-on approach with portfolio companies. “We work shoulder to shoulder with our founders, spending hours studying how new behavior and technologies can be packaged into the best experiences for everyday users,” he explained.
Several investments from the new fund have already been completed, though specific deals remain undisclosed. The firm plans to announce portfolio additions as companies progress through development milestones.
