Key Takeaways:
- Galaxy Digital raised $175 million in its first external-capital venture fund, surpassing a $150 million target.
- The fund targets high-growth crypto sectors like stablecoins, tokenization, and payments.
- Despite market headwinds, Galaxy’s reputation and infrastructure roots helped secure strong institutional backing.
Crypto conglomerate Galaxy Digital has closed a $175 million venture fund—its first with outside capital—as it expands investment into early-stage blockchain and crypto startups. This milestone, announced via a press release on Thursday, signifies a major pivot for the company, which has historically relied solely on its own balance sheet for venture deals.
The new fund exceeded its $150 million target and is aimed at fueling innovation across high-growth areas including stablecoins, tokenization, payments, and the software infrastructure that supports them.
Galaxy Enters New Chapter with External Investors
Until now, Galaxy Digital had self-funded all venture activity. By welcoming outside capital, it opens the door for greater investment scale and strategic partnerships. General Partner Mike Giampapa noted the increasing pace of adoption globally, particularly around real-world use cases in financial services.
“This fund gives us the opportunity to partner with entrepreneurs building mission-critical infrastructure across payments and capital markets,” Giampapa stated.
The firm announced its first close of $113 million back in July 2024. Since then, $50 million has already been deployed, backing projects such as Monad, a high-performance blockchain, and Ethena, the issuer of a yield-bearing stablecoin.
Overcoming a Difficult Crypto Fundraising Landscape
Despite the broader market experiencing a slowdown in fundraising, Galaxy Digital managed to exceed its venture fund target. Founder and CEO Mike Novogratz credited the company’s blockchain roots and infrastructure expertise for its appeal to institutional and family office investors.
“We’re committed to supporting startups building real-world applications that will define the next phase of crypto adoption,” Novogratz commented.
The fund is anchored by Galaxy itself, holding both general and limited partner positions. Other participants include a diverse group of institutions, family offices, and digital asset firms—highlighting growing confidence in the long-term potential of blockchain technology.
Also Read: Galaxy Ventures Backs RISE Chain, $8M Raised to Launch Fastest Zone for Real-Time Apps on Ethereum
Galaxy Expands Despite Q1 Losses
Founded in 2018 by former Goldman Sachs executive Mike Novogratz, Galaxy Digital has grown into a dominant player in crypto, spanning asset management, ETFs, mining, and now, venture capital. In May, Galaxy was listed on Nasdaq and reported $7 billion in assets under management.
However, not all has been smooth sailing. The firm posted a $295 million loss in Q1 2025, due to market volatility and restructuring in its mining division. Still, Galaxy continues to gain momentum. In November 2024, it recorded its biggest trading day during the U.S. election, with Novogratz’s net worth spiking by $600 million.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
