Crypto billionaire Michael Novogratz's Galaxy Digital BRPHF is deepening its commitment to the cryptocurrency industry with a $113 million venture fund.
What Happened: The fund, Galaxy Ventures Fund I LP, will focus on early-stage startups building the software, infrastructure, and financial applications that underpin the crypto ecosystem, Bloomberg reported.
This initiative marks a strategic shift for Galaxy, which has traditionally invested its own capital in crypto startups.
Mike Giampapa, General Partner at Galaxy, articulated the fund’s long-term vision saying, “Our macro view is blockchains will be utilized to settle the majority of transactions. It’s a one-, two-decade transition that we are betting on.”
The fund’s approach is both broad and focused, aiming to build a diverse portfolio of approximately 30 investments.
It has already made notable investments in projects like Ethena, Monad, and Plume, demonstrating its commitment to supporting cutting-edge blockchain technologies.
Will Nuelle, another General Partner for the fund, outlined their investment strategy saying, “The fund expects to invest between $3 million and $5 million per project, though the amount may vary.”
This flexible approach allows Galaxy to adapt to the unique needs and potential of each startup they support.
Galaxy’s move to open its venture arm to outside investors is particularly telling. It reflects a growing trend in the crypto industry, where established players are increasingly seeking external capital to fuel innovation and growth.
The fund’s ambitious target of reaching $150 million by next year further underscores the optimism surrounding the sector.
This development is not occurring in isolation. It’s part of a broader resurgence in venture capital investments in the crypto space.
Firms like Pantera Capital and Paradigm are also raising new funds, riding the wave of enthusiasm driven by Bitcoin’s recent all-time high and the prospect of a more favorable regulatory environment in the US.
What’s Next: As the crypto industry continues to evolve and mature, initiatives like this play a crucial role in fostering innovation and driving adoption.
For those keen to delve deeper into these developments and their implications for the future of digital assets, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 promises to be an invaluable forum.
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