Galaxy Digital secures $175M for its first externally backed fund to support early-stage crypto startups and boost Web3 innovation.
Galaxy Digital has increased its intentions to invest in early-stage cryptocurrency firms by closing a $175 million venture fund, its first with outside funding.
The initiative is the first time Galaxy has invested outside funding, surpassing its $150 million goal.
According to a news release on Thursday, the corporation has only used its balance sheet for venture investments.
The fund focuses on high-growth industries like payments, tokenization, stablecoins, and the software frameworks that underpin them.
General partner Mike Giampapa said, “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.”
Despite Downturn, Galaxy Digital Surpasses Its Fund Target
According to founder and CEO Mike Novogratz, during one of the most difficult times for cryptocurrency fundraising, the company closed its first venture fund above target.
“With strong foundations in blockchain infrastructure and on-chain markets, we’re dedicated to supporting entrepreneurs and startups creating practical use cases influencing the next wave of cryptocurrency adoption,” he continued.
Galaxy is the new fund’s anchor, which owns both general partner and limited partner stakes.
Various backers, including family offices, institutions, and digital asset companies, were drawn to it.
Galaxy, which has already invested $50 million and announced a first closing of $113 million in July 2024, supports businesses like Ethena, the issuer of a yield-bearing stablecoin, and Monad, a blockchain with a performance focus.
By publication, Cointelegraph had not heard back from Galaxy regarding its request for comment.
Galaxy Turns Into Massive Cryptocurrency
Galaxy, a vast cryptocurrency conglomerate with exposure to asset management, Bitcoin exchange-traded funds (ETFs), mining, and venture capital, was founded in 2018 by Mike Novogratz, a former partner at Goldman Sachs.
The company declared $7 billion in assets under management when it went public on the Nasdaq in May.
Nevertheless, it lost $295 million in the first quarter of 2025 due to mining arm restructuring and declining prices.
On November 5, the day of the 2024 US election and the announcement of Donald Trump as the winner of the presidency, Galaxy Digital saw its highest trading day of 2024, according to Cointelegraph.
Novogratz’s net worth increased by almost $600 million, or 15%, to $4.6 billion that day.
