Galaxy Digital has closed a $175 million venture fund, its first with outside capital, as the company ramps up plans to invest in early-stage crypto startups.
The fund, which exceeded its $150 million target, marks the first time Galaxy has accepted outside capital. Until now, the company had relied solely on its own balance sheet for venture investments, according to a Thursday press release.
The fund targets high-growth sectors such as stablecoins, tokenization, and payments, as well as the software layers that support them.
“We’re seeing an acceleration of adoption from both institutions and retail users globally—especially around use cases like payments, capital markets, and financial services more broadly,” general partner Mike Giampapa commented.
Related: Galaxy Digital lists on Nasdaq, seeks to tokenize shares
Galaxy exceeds fund target despite slowdown
Founder and CEO Mike Novogratz said the company has been able to close its first venture fund above target during one of the toughest periods for crypto fundraising.
“With deep roots in onchain markets and blockchain infrastructure, we’re committed to backing founders and startups building real-world use cases that are shaping the next chapter of crypto adoption,” he added.
The new fund is anchored by Galaxy itself, which holds both general partner and limited partner stakes. It attracted a broad range of backers, including institutions, family offices, and digital asset firms.
Galaxy announced a first close of $113 million in July 2024 and has already deployed $50 million, backing companies such as Monad (a performance-focused blockchain) and Ethena (the issuer of a yield-bearing stablecoin).
Cointelegraph reached out to Galaxy for comment but had not received a response by publication.
Related: Galaxy Digital to pay $200M over Terra promotion fallout
Galaxy becomes a crypto giant
Founded in 2018 by former Goldman Sachs partner Mike Novogratz, Galaxy has grown into a sprawling crypto conglomerate with exposure to asset management, Bitcoin exchange-traded funds (ETFs), mining and venture investing.
In May, the firm was listed on Nasdaq and reported $7 billion in assets under management. Still, it suffered a loss of $295 million in the first quarter of 2025 due to falling prices and restructuring in its mining arm.
As Cointelegraph reported, Galaxy Digital clocked its biggest trading day of 2024 on Nov. 5, the day the 2024 US election was called and Donald Trump was declared president-elect. On that day, Novogratz’s net worth surged about 15%, or by around $600 million, to $4.6 billion.
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