tl;dr
Mike Novogratz's Galaxy Digital has raised $113 million for a new crypto asset venture capital fund, with a fundraising goal of up to $150 million, focusing on infrastructure. The fund targets early start-ups leveraging crypto software and has already invested in companies like Monad and Ethena. Gal...
Galaxy Digital, led by Mike Novogratz, has raised $113 million for a new crypto asset venture capital fund. The fund, with a fundraising goal of up to $150 million, focuses on infrastructure. It targets early start-ups leveraging crypto software and has already invested in companies like Monad and Ethena. The company plans to invest $3 to $5 million per project and is open to new investors.
In a move to fuel the digital asset ecosystem, Galaxy Digital's asset management division has merged with Galaxy Venture Fund, allowing outside investors to participate. The decision aligns with increased investor appetite for digital assets, driven by heightened institutional investment in the crypto market in 2024. Rising asset prices and surging decentralized finance activities have led to record-breaking institutional investments, with crypto VC funds attracting $3.2 billion in Q2 2024 despite falling prices from Q1 2024.
Galaxy Venture Fund, with a capital raise of $133 million, is targeting early start-ups leveraging crypto software and aims to partner with 30 crypto firms. The company intends to invest between $3 to $5 million per project and has already invested in companies like Monad and Ethena. Galaxy Digital has historically invested between $30 million to $50 million annually in crypto companies and has moved its asset management division alongside the Galaxy Venture Fund. This fund is open to outside investors, reflecting a strategic decision to continue fueling the digital asset ecosystem by backing promising early-stage ventures.
The increased institutional investment in the market is attributed to the approval of spot Bitcoin ETFs, driven by rising prices of crypto assets and surging DeFi activities. In Q2 2024, the crypto VC funds saw substantial inflows, attracting $3.2 billion despite falling prices from Q1 2024.