Galaxy Digital Plans to Launch $100 Million Crypto Venture Fund: Report – Unchained

The Galaxy Ventures Fund I, LP, will aim to invest in 30 startups over the next three years, targeting firms building financial applications, software infrastructure and crypto protocols.

Crypto investment firm Galaxy Digital plans to raise up to $100 million for a venture fund that will focus on early-stage crypto firms, according to an investor email seen by CoinDesk.

The fund, called Galaxy Ventures Fund I, LP, will aim to raise funds from institutional investor. The company hopes to invest in 30 startups building in the crypto space over the next three years. Check offered to startups will start at $1 million, per the report.

As per the email, these firms will ideally be involved in creating financial applications, software infrastructure and crypto-based protocols.

Galaxy merged its venture capital arm with its asset management business last year, and has invested $200 million into over 100 crypto projects over the last six years. So far, Galaxy has invested its own funds in these crypto startups, but the Galaxy Ventures Fund I will be open to outside investors. 

This fund “will continue the success of our proprietary balance sheet investing but through a direct, institutional-grade fund,” said Galaxy in the email. 

Venture funding in the crypto space has picked back up in a big way over the last year, as the wider digital asset market moved out of the latest “crypto-winter” and recovered from the systemic fallout that ensued following bankruptcies of major firms such as FTX.  

Total funding for crypto or blockchain companies surpassed $1.4 billion for the month of March,  which is the highest monthly level since September 2022, according to The Block. Galaxy Digital is not alone in trying to raise new funds, crypto venture firm Paradigm is looking to raise $750 million for a fund, which would be the largest since the crypto downturn.

In a recent interview with The Scoop Podcast, FalconX’s head of revenue and business Austin Reid said that the world’s largest hedge funds are just getting started with crypto.

April 4 02:48 ET: This article has been updated to clarify that the minimum investment size is for startups and to add additional information on the deals landscape.