Galaxy Digital Closes $175 Million Venture Fund for Crypto Startups

Galaxy Digital, a prominent player in the digital asset industry, has successfully closed its first venture fund with external capital, securing $175 million. This fund is specifically designed to invest in early-stage crypto startups, with a particular focus on those that bridge the gap between traditional finance and blockchain technology. The closure of this fund marks a significant milestone for Galaxy Digital, as it expands its investment capabilities and deepens its commitment to the growing digital asset ecosystem.

The fund, which exceeded its initial target of $150 million, was driven by strong investor demand. This demand reflects the increasing interest and confidence in the potential of digital assets and blockchain technology. Galaxy Digital's strategy with this fund is to back startups that are at the intersection of traditional finance and crypto, with a notable emphasis on stablecoins. This focus aligns with the broader trend of integrating digital assets into mainstream financial systems, providing stability and reliability to crypto transactions.

Founded in 2018 by former Goldman Sachs partner Mike Novogratz, Galaxy has long positioned itself as a bridge between traditional finance and the emerging crypto economy. The new venture fund deepens that commitment by focusing on early-stage startups building at the intersection of decentralized finance (DeFi), stablecoins, and blockchain infrastructure. CEO Mike Novogratz highlighted the company's ability to close its first venture fund above target during one of the toughest periods for crypto fundraising. He further added, “With deep roots in onchain markets and blockchain infrastructure, we’re committed to backing founders and startups building real-world use cases that are shaping the next chapter of crypto adoption.”

Mike Giampapa, general partner at Galaxy, emphasized that the move is aimed at capitalizing on a “fundamental shift” in crypto from speculative ventures to more tangible financial applications. “You’re seeing this fundamental shift from more speculative use cases of blockchains to something that’s much more… tangible,” he stated. Galaxy anchors the fund with capital from its own balance sheet, while also taking on the role of a limited partner and owning the general partner entity. The fund’s backers include institutional players such as family offices and funds of funds, though specific investors remain undisclosed.

So far, the fund has deployed around $50 million into startups including Monad, a trading-focused blockchain, and Ethena, a protocol that issues a yield-bearing stablecoin backed by crypto assets. Giampapa, formerly of IVP and Bessemer Venture Partners, co-leads the fund alongside Will Nuelle. The launch comes amid a broader effort by Galaxy to grow its footprint across multiple business lines. In addition to asset management and crypto mining, Galaxy launched a Bitcoin ETF with Invesco in early 2024 and is exploring a Solana ETF. As of May 2025, Galaxy reported $7 billion in assets under management, despite a $295 million net loss in Q1 due to falling crypto prices and mining operation costs.

Giampapa emphasized that Galaxy is not taking a corporate venture approach. Instead, the firm remains focused on returns while leveraging synergies with its broader institutional business. “We’ve had this thesis going back pretty much since Galaxy’s inception,” Giampapa said. “We think these two worlds are colliding. We want to invest at the earliest stages.”

The portfolio of this fund includes promising blockchain infrastructure firms, indicating Galaxy Digital's interest in supporting the foundational technologies that underpin the crypto ecosystem. By investing in these early-stage startups, Galaxy Digital aims to foster innovation and growth in the digital asset space, ultimately contributing to the maturation of the industry. The closure of this fund is a testament to Galaxy Digital's strategic vision and its ability to attract significant capital from investors. The company's approach of combining traditional finance expertise with cutting-edge blockchain technology positions it well to identify and support the most promising startups in the crypto space. As the digital asset industry continues to evolve, Galaxy Digital's $175 million fund is poised to play a crucial role in shaping its future.