Galaxy Digital has announced the closing of its first venture fund, which has raised $175 million. This event signifies the company's shift towards managing external capital.
Fund Creation and Objectives
The Galaxy Digital venture fund was established in 2018 by founder and former Goldman Sachs partner Mike Novogratz. The fund aims to invest in early-stage startups working in decentralized finance (DeFi), stablecoins, and blockchain infrastructure.
Leadership Commentary from Galaxy Digital
Galaxy Digital CEO Mike Novogratz noted that the fund was closed above target amid a challenging crypto fundraising environment. He emphasized the importance of supporting startups that create real-world applications of blockchain technology. VP Mike Giampapa added that the fund will help capitalize on a 'fundamental shift' in the crypto industry from speculation to more tangible financial applications.
Investments and Fund Strategy
To date, the fund has deployed approximately $50 million into startups such as Monad and Ethena. Galaxy Digital is not taking a corporate venture approach, instead focusing on returns while leveraging synergies with its other business lines. Giampapa noted that the company aims to invest at the earliest stages.
The closure of Galaxy Digital's first venture fund marks a significant step for the company, demonstrating its commitment to evolving in the rapidly changing crypto economic landscape.
