Quick take:
- The company started raising the funds in 2024, announcing an initial close of $113 million last July.
- The names of participating investors have not been disclosed, but general partner Mike Giampapa said there were institutional investors and family offices.
- Galaxy will serve as a limited partner in the fund, whilst also owning a general partner stake.
Mike Novogratz’s Galaxy Digital has launched its first venture fund, anchoring a $175 million funding that also attracted participation from undisclosed institutional investors and family offices.
The crypto conglomerate initially planned to raise $150 million, but was oversubscribed as it seeks to expand its investments in crypto startups. The company started raising the funds in 2024, announcing an initial close of $113 million last July.
Galaxy will serve as a limited partner in the fund, whilst also owning a general partner stake. Commenting on the firm’s decision to launch its first venture fund, general partner Mike Giampapa told Fortune: “You’re seeing this fundamental shift from more speculative use cases of blockchains to something that’s much more…tangible.” Galaxy is targeting startups working at the intersection of traditional finance and blockchain technology.
Recently, there has been a great shift towards the tried and proven digital payments space, with traditional financial services companies tapping crypto startups to integrate blockchain payments.
“Quietly, we had this stablecoin revolution,” he told Fortune. “While the industry was getting our feet underneath us again, it became obvious that we wanted to take our venture franchise to the next level,” Giampapa said.
According to Giampapa, Galaxy takes a more unique approach to investing in startups. Rather than targeting those that are synergistic to its operations, the company follows a more traditional strategy of focusing on returns and plans to continue with the same approach for the new fund.
Galaxy has already deployed $50 million of the new fund to crypto startups, including trading-focused blockchain Monad and the synthetic dollar protocol Ethena, Fortune reported.
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