Galaxy Asset Management, a subsidiary of Galaxy Digital Holdings founded by billionaire Michael Novogratz, has just announced the completion of the Galaxy Ventures Fund I (GVF I), raising a total of $175 million, exceeding the initial target of $150 million. This is Galaxy's first fund to attract external capital after years of direct investment.

Investment strategy and focus

This fund will focus on early-stage startups building infrastructure and financial applications for DeFi. Key areas include stablecoins, payments, tokenization of real-world assets (RWA), and supporting infrastructure layers. Galaxy expects GVF I to invest in approximately 30 of the most promising projects in the digital asset space.

CEO Mike Novogratz shared that the fund's closing exceeded expectations in the context of a challenging crypto venture capital investment environment, showcasing Galaxy's distinct capabilities. He is committed to working alongside founders to build practical applications that shape the next chapter of cryptocurrency.

According to Mike Giampapa, managing partner of the fund, the decision to expand venture capital activities was driven by the wave of practical applications in crypto, particularly stablecoins and DeFi. He noted that "We are witnessing a shift from speculative use cases to more practical and sustainable financial models."

Investment portfolio and market position

GVF I has deployed approximately $50 million initially into projects such as Monad, Ethena, M^0, Plume, Rail, and Yellow Card. Currently, Galaxy's portfolio includes more than 120 companies, including previous internal capital investments.

Unlike the strategic investment models of many corporations, Galaxy opts for a traditional investment strategy focused on profitability. At the same time, the company leverages its institutional client network to support growth for startups in the ecosystem. The Galaxy Ventures team, led by Will Nuelle and Mike Giampapa, along with a startup support platform, provides internal resources and connections to strategic business areas such as trading, lending, staking, blockchain infrastructure, and asset tokenization.

Despite recording a loss of $295 million in Q1 2025 due to a weakened market and costs associated with ceasing mining operations, #GALAXY remains a leading cryptocurrency conglomerate in the U.S., with over $7 billion in assets under management. Alongside venture capital activities, Galaxy has also launched spot Bitcoin and Ethereum ETFs in the U.S., in partnership with Invesco, and is pursuing SEC approval for a Solana ETF.