Crypto investment firm Galaxy Digital has closed its first ever outside capital venture fund with $175 million, surpassing its initial target of $150 million. The fund marks a significant step for the company as it transitions from investing off its own balance sheet to managing outside capital for the first time.
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 said, “ the company has been able 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, said 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.”
