Galaxy Digital Closes $175 Million Crypto Venture Fund Amid Market Volatility

Galaxy Digital has successfully closed its first externally-backed crypto venture fund, Galaxy Ventures Fund I, with over $175 million in capital, surpassing its initial target of $150 million. This fund is designed to support early-stage crypto startups focusing on infrastructure and applications that drive stablecoins, tokenization, and onchain payments. The successful raise indicates growing institutional confidence in the real-world adoption of crypto technologies, despite the current market volatility.

The newly launched Galaxy Ventures Fund I will concentrate on startups developing core components of the onchain economy. These components include stablecoin infrastructure, payment rails, real-world asset tokenization, and underlying blockchain protocols and development tools. Galaxy aims to support founders from the pre-seed to Series A stages, helping to scale projects through its extensive crypto-native ecosystem.

Prior to this fund, Galaxy had been investing in crypto startups directly from its balance sheet since 2018. The inclusion of external limited partners (LPs) in GVF I marks a strategic shift towards a more structured, institutionalized venture fund model. The fund has attracted a diverse group of backers, including global institutional investors, family offices, and strategic digital asset companies. Galaxy remains an anchor investor, holding both general partner and limited partner positions, which allows it to maintain high conviction in its investments while expanding its reach through outside capital.

Galaxy Ventures’ portfolio already includes over 120 companies, combining both legacy balance-sheet investments and the new GVF I fund. Some notable investments include Monad, a high-performance Layer-1 blockchain; Ethena, an issuer of a synthetic stablecoin; Arch Lending, a DeFi protocol focused on credit markets; and platforms like Plume, Rain, and RedotPay, which integrate digital asset payments and financial infrastructure across borders. These investments highlight Galaxy’s focus on foundational technologies with real-world use cases, emphasizing utility, compliance readiness, and institutional compatibility.

The successful close of GVF I comes at a time when crypto venture capital has significantly contracted. This $175 million raise is particularly impressive given the challenging fundraising environment. Galaxy executives emphasize that the fund is aimed at the next wave of crypto adoption, focusing on tangible, regulated applications. Mike Giampapa, General Partner at Galaxy Ventures, stated that blockchain infrastructure is poised to revolutionize global financial markets, with accelerating adoption from both institutions and retail, particularly in payments and capital markets.

Galaxy’s strategic edge in the crypto ecosystem lies in its ability to provide startups with more than just capital. With over 550 employees across digital asset trading, lending, staking, and custody, the firm offers deep operational support. Portfolio companies benefit from technical assistance, connectivity to Galaxy’s trading desks and infrastructure arms, and strategic guidance from executives like Mike Novogratz. This hands-on support sets Galaxy apart from traditional VC firms that may not offer industry-native backing.

Novogratz highlighted this advantage, stating that closing above target in one of the toughest crypto fundraising climates shows how Galaxy’s team brings a unique edge to the table. The firm is committed to supporting startups building real-world use cases that will shape the next era of crypto. While mainstream headlines often focus on crypto’s volatility, there is a quiet resurgence of institutional interest. Galaxy’s venture raise comes as trailing indicators of real capital re-entering the market begin to emerge, with major financial institutions rolling out or expanding tokenized funds and piloting onchain settlement rails and tokenized gold products. GVF I positions Galaxy at the center of this evolution, connecting Web3 to traditional finance through various deals involving the fund.