Mike Novogratz’s Galaxy Asset Management raises $175 million for inaugural venture fund

Galaxy Asset Management, an affiliate of Galaxy Digital Holdings, closed a $175 million raise for Galaxy Ventures Fund I LP on Thursday, focused on investing in early-stage companies across blockchain protocols, software infrastructure, and financialized applications, according to a press release.

The fund's goal is to build a portfolio of approximately 30 investments in the "most promising" digital asset companies, attracting institutional allocators, family offices, and high-net-worth individuals, though Galaxy has not named them. "The Fund specifically has and will continue to target investments in secular growth areas like stablecoins, payments, and tokenization, plus all the supporting infrastructure that makes such technologies viable," the firm said on Thursday.

"Galaxy Ventures closing its first fund above the target at a time when raising crypto venture is historically difficult showcases our team's unique edge in the market," Galaxy founder and CEO Mike Novogratz said. "With deep roots in onchain markets and blockchain infrastructure, we're committed to backing founders and startups building real-world use cases that are shaping the next chapter of crypto adoption."

Galaxy began raising capital for the fund in the second quarter of 2024 — its first to include outside investors, having previously invested from Galaxy's balance sheet since 2018 — with an initial close of $113 million, The Block previously reported. However, witnessing additional interest from institutional investors, Galaxy continued fundraising into this year, planning to reach, if not exceed, the fund's $150 million target.

"From the very beginning, successfully investing in and supporting founders, technologies, and companies at the forefront of digital asset innovation has been central to Galaxy's mission since 2018," Galaxy President and CIO Chris Ferraro said at the time. "By taking on external capital, we can extend our expertise, experience, and proven track record to institutional investors eager to tap into the next wave of growth."

Bloomberg earlier reported in April that the fund expected a final close at the end of June, with $175 million to $180 million raised, citing a person familiar with the matter who asked for anonymity because the amount hadn't yet been made public.

Last month, Galaxy finalized its move to the U.S. ahead of listing on the Nasdaq. The firm also reported a first-quarter net loss of $295 million, driven by a slump in digital asset prices and a mining-related impairment charge. Galaxy's stock (GLXY) closed down 1.6% on Wednesday at $19.40 and is currently up 2% in pre-market trading on Thursday, according to TradingView.

Galaxy Ventures has backed over 120 companies to date, with its new fund investing in startups such as 1Money, Arch Lending, Ethena, M^0, Monad, Plume, Rail, Rain, RedotPay, Ubyx, and Yellow Card, among others. The firm has also launched its own spot Bitcoin and Ethereum exchange-traded funds in the U.S., alongside Invesco, and is one of several firms seeking SEC approval for a spot Solana ETF following its latest filing on Wednesday.

The Block reached out to Galaxy for comment.