Galaxy Digital, led by Mike Novogratz, has successfully raised $113 million for a new venture capital fund focused on the cryptocurrency sector. This fund targets early-stage startups, particularly those involved in developing critical infrastructure and innovative technologies within the crypto space. The fundraising goal for the new fund is set at $150 million, reflecting increased investor interest as the digital asset market rebounds.
Capital Raised for New VC Fund
Galaxy Digital's new venture capital fund, aiming to leverage investments in crypto software startups, has raised $113 million, according to Bloomberg. The Galaxy Venture Fund has already invested in companies such as Monad and Ethena, and plans to partner with approximately 30 crypto firms. The fund intends to invest between $3 million to $5 million per project, welcoming new investors to join.
Historically, Galaxy Digital has invested between $30 million to $50 million annually in crypto companies. The asset management division has now been integrated with the Galaxy Venture Fund, which uniquely opens up to external investors, enhancing cooperation and market depth. Initially, the company set a goal of $100 million for the fund, targeting investments over the next three years.
Mike Wursthorn, Galaxy's Communications Officer, elaborated on the strategy to include external partners: “For years, we’ve been putting our capital behind these innovators. Now we’re launching Galaxy Ventures Fund I LP to partner with outside investors, allowing us to continue fueling the digital asset ecosystem by backing promising early-stage ventures.”
Recent Investments and Market Trends
Galaxy Digital has made significant standalone investments and contributions to various funds within the crypto space. The current year has seen a surge in institutional investments, particularly following the approval of spot Bitcoin ETFs. This trend is driven by rising crypto asset prices and increased decentralized finance (DeFi) activities. At press time, Bitcoin is trading at $64,246, a substantial rise from last year, though still below its all-time high of over $73,000.
In Q2 2024, crypto VC funds attracted $3.2 billion, as reported by Galaxy Digital, despite a drop in prices from Q1 2024. This influx of capital highlights the ongoing interest and confidence in the potential of digital assets and blockchain technology.
With the new Galaxy Venture Fund, Galaxy Digital continues to position itself at the forefront of crypto investments, fostering innovation and supporting the growth of the digital asset ecosystem.
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