Galaxy Digital has announced the closing of its first venture fund, amounting to $175 million, which will focus on investments in early-stage crypto startups.
Galaxy Digital's First Venture Fund
Galaxy Digital has completed fundraising for its first venture fund, totaling $175 million, exceeding its initial target of $150 million. This marks the first time the firm has accepted outside capital, previously relying solely on its own balance sheet. General partner Mike Giampapa mentioned that the fund will target companies focusing on stablecoins, DeFi applications, and practical blockchain use cases.
Response to FTX Collapse
According to Giampapa, Galaxy Digital had long sought to expand its venture operations beyond balance sheet investments, and the post-FTX collapse presented a timely opportunity for this. “We quietly had this stablecoin revolution. As the industry was getting our feet underneath us again, it became obvious that we wanted to take our venture franchise to the next level,” he noted.
Galaxy Digital's Growth
Galaxy Digital was founded in 2018 by former Goldman Sachs partner Mike Novogratz. Since then, the company has significantly expanded its operations and now manages $7 billion in assets. In May 2024, the firm went public on Nasdaq but also reported a $295 million loss in the first quarter of 2025 due to falling prices and restructuring within its mining segment.
Galaxy Digital is continuing to evolve within the cryptocurrency landscape by accepting external investment and planning to support startups working on practical blockchain solutions.
