- Galaxy Digital plans to start accepting outside capital and investing through a new $100 million crypto venture fund
- The new fund will be managed by Galaxy Digital’s prolific venture wing
- Galaxy Digital’s venture arm has made over 80 investments across various crypto and blockchain companies since 2018
Galaxy Digital Holdings Ltd., the crypto merchant bank founded by billionaire Mike Novogratz, is planning to raise $100 million for its first venture fund, according to people familiar with the matter.
Galaxy Venture Fund Details
The new fund will focus on early stage investments in blockchain and digital asset companies, as well as select cryptocurrency protocols. It will make seed and Series A investments ranging from $500,000 to $5 million.
The firm aims to raise the fund in the first half of this year. Novogratz hinted at the plans last month, saying he wanted to raise “a couple hundred million” for “a venture fund targeting developers and entrepreneurs.”
Galaxy Digital’s Venture Business
Galaxy Digital has been active in venture capital over the last few years, leading funding rounds for startups like Bakkt, BlockFi, Bitso, Bitpanda and Argent. But those deals were made through the firm’s balance sheet.
A dedicated venture fund would allow Galaxy to court outside investors and potentially generate management and performance fees. Galaxy is best known for its trading operations, but has been trying to diversify into other areas like investment banking and asset management.
Venture capital has been one of the hottest areas of the crypto industry over the past couple years, as investors pour money into building infrastructure for digital assets. Crypto venture funds raised nearly $5 billion last year, more than double the previous record, according to PitchBook data.
Conclusion
The new Galaxy fund would add to the torrent of venture money flowing into the crypto space. With Galaxy’s brand recognition and Novogratz’s Rolodex, it seems likely to attract significant investor interest.
