Galaxy Digital Closes $175 Million Venture Fund 17% Above Target

Galaxy Digital has successfully closed a $175 million venture fund, marking its first venture to include external investors. This fund, named Galaxy Ventures Fund I, LP, was initially targeting $150 million but exceeded expectations due to strong investor interest in early-stage digital asset ventures. The fund is designed to support startups building infrastructure and applications for the on-chain economy, with a particular focus on financialized applications, software infrastructure, and blockchain protocols.

Key sectors of interest for the fund include stablecoins, tokenization, and digital payment systems, which are seen as foundational to the evolving blockchain landscape. This launch represents a significant milestone for Galaxy Ventures, as it is the first time the firm has accepted capital from outside investors. Previously, Galaxy Ventures deployed capital from Galaxy’s own balance sheet since 2018.

The fund has already formed a portfolio of early-stage startups, including Monad, Ethena, Arch Lending, Rail, and Yellow Card, among others. In total, including previous balance sheet investments, Galaxy Ventures has backed over 120 companies. The Galaxy Ventures team is led by Will Nuelle and Mike Giampapa, supported by the Ventures Platform team that helps portfolio companies scale through operational support.

CEO Mike Novogratz emphasized that the oversubscribed close of the fund demonstrates the firm’s market insight and its commitment to supporting real-world use cases for blockchain technology. Giampapa added that as blockchain infrastructure continues to gain traction, especially in areas like payments and financial services, the fund is well-positioned to engage directly with the next wave of innovation in crypto.

On May 16, Galaxy Digital began trading on the Nasdaq, following Coinbase’s inclusion in the S&P 500 and eToro’s public listing. Galaxy CEO and founder Novogratz described this step as a “milestone,” emphasizing that it will strengthen Galaxy’s role in bridging investor access to the digital asset and artificial intelligence sectors. Previously listed on the Toronto Stock Exchange, Galaxy Digital is known for its crypto investments and focus on AI data center infrastructure.