Galaxy Digital’s founder Mike Novogratz has launched a $175 million venture fund. Announced today, the fund, which surpassed its $150 million target, marks the firm’s first venture to accept outside capital. This strategic expansion aims to back startups bridging crypto and mainstream finance, spotlighting opportunities in stablecoins and decentralized finance (DeFi).
Galaxy’s $175 Million Launch
Galaxy, a major player in the U.S. crypto scene, operates across asset management, crypto mining, and even a Bitcoin ETF launched with Invesco in 2024. Now, it is doubling down on venture capital to seize opportunities in blockchain’s growing practical applications. General partner Mike Giampapa stated that the fund targets startups working on tangible solutions, like stablecoins and DeFi, moving away from speculative blockchain uses.
The decision to raise external capital came after the 2022 collapse of FTX, which rocked the crypto market. Giampapa noted a “stablecoin revolution” during this period, prompting Galaxy to scale its venture arm. The fund, anchored by the firm’s balance sheet, includes institutional investors like family offices and has already deployed $50 million into projects like Monad, a trading-focused blockchain, and Ethena, a stablecoin protocol.
A Strategic Shift with Broad Impact
Unlike corporate venture models that prioritize synergy, Galaxy’s fund focuses on financial returns, a strategy Giampapa, a veteran of IVP and Bessemer, brings to the table alongside partner Will Nuelle. The fund’s investments align with Galaxy’s broader operations, connecting startups to its institutional clients. Despite managing $7 billion in assets, the company reported a $295 million loss in Q1 2025, driven by falling crypto prices and costs from scaling back mining.
Notably, the company remains a crypto powerhouse, undeterred by past setbacks like its failed Luna stablecoin investment. With plans for a Solana ETF, Galaxy continues to diversify, positioning itself at the forefront of crypto’s integration into mainstream finance.
Galaxy is driving the integration of digital assets with traditional finance by strategically backing innovative startups. Novogratz’s keen ability to identify trends is set to improve how investors engage with digital assets, firmly establishing the company as a dominant force in blockchain innovation.
