Highlights:
- Galaxy Digital has raised $113 million for a new venture capital fund focused on early-stage crypto startups.
- The fund, targeting a $150 million goal, will invest in crypto software, infrastructure, and financial applications.
- Galaxy Digital, led by Michael Novogratz, aims to invest between $3 million and $5 million per project.
Galaxy Digital has successfully raised $113 million for its new crypto venture capital (VC) fund, which aims to support early-stage startups focusing on crypto software, infrastructure, and financial applications. This significant funding effort, spearheaded by the asset management unit of billionaire Michael Novogratz, targets a total of $150 million.
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Galaxy Digital raises $113M for crypto venture fund
Galaxy Asset Management, a cryptocurrency financial services firm led by billionaire Michael Novogratz, has raised $113 million for a venture fund targeting early-stage crypto startups, according to Bloomberg. The Galaxy…
— CoinNess Global (@CoinnessGL) July 25, 2024
Strategic Investments in Crypto Startups
According to the Galaxy’s report, Galaxy Ventures Fund I LP intends to build a portfolio of approximately 30 investments. Notable early investments include projects like Ethena, Monad, and Plume. Galaxy Digital Holdings, based in New York, announced its intention to continue raising funds to achieve its goal of $150 million by next year.
The digital asset firm Galaxy Ventures has a history of investing between $30 million and $50 million annually in various crypto startups. These investments have focused on infrastructure, decentralized finance, and payment sectors. Last year, Galaxy decided to incorporate this group into its asset management division, launching Galaxy Ventures Fund I to include outside investors.
General Partner Mike Giampapa highlighted the fund’s strategic outlook: “Our macro view is blockchains will be utilized to settle the majority of transactions. It’s a one-, two-decade transition that we are betting on.” The fund anticipates investing between $3 million and $5 million per project, though this amount may vary, according to Will Nuelle, the other general partner.
Increased Institutional Investment
This new fund clearly indicates a resurgence in venture capital investments in the crypto sector. Other firms, like Pantera Capital and Paradigm, are also raising new funds, driven by rising crypto prices. Bitcoin reached a new all-time high in March, and a potential better regulatory environment in the US is boosting investor enthusiasm.
Mike Novogratz’s Galaxy Digital has secured $113 million for a venture capital fund targeting industry startups and technology. Following increased investor interest in digital assets, this fund aims to attract up to $150 million and focus on infrastructure.
Expanding Market Depth
The Galaxy Ventures Fund is already partnering with 30 crypto firms, including Monad and Ethena. In addition, Galaxy Digital seeks to invest between $3 million and $5 million per project. Galaxy Digital has historically invested $30 million to $50 million annually into various crypto companies. This move to open the fund to outside investors aims to increase cooperation and market depth.
Steve Kurz, Galaxy Digital’s global head of asset management, stated:
This fund will strengthen our commitment to fostering innovation in the digital asset space, enabling us to back visionary startups and obtain unique perspectives on the emerging technologies that will influence our company and the future of finance.
Galaxy Digital’s new fund comes as other firms like Pantera Capital and Paradigm ramp up their venture strategies. This signals a recovery in the crypto market. Pantera Capital plans to raise over $1 billion for a new blockchain assets fund. Moreover, Paradigm raised $850 million for its third fund, focusing on early-stage crypto projects.
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