Galaxy Digital Initiates $100M Venture Fund for Early-Stage Crypto Startups
Summary:
Galaxy Digital, led by Mike Novogratz, is in the early stages of raising a $100 million venture fund primarily aimed at supporting early-stage crypto startups, with a significant portion of the funding expected to come from outside investors. Galaxy Ventures, the firm's venture subsidiary, is set to make a minimum investment of $1 million into startups through the fund. This move comes amid an upswing in venture funds returning to the stagnant crypto market of last year, with total Crypto VC funding in March surpassing 50% from the previous month at $1.16 billion. Other major firms, including RootDataPara, Hack VC, and Andreessen Horowitz, are also reportedly raising significant funds to back crypto startups.
Leading cryptocurrency firm Galaxy Digital, piloted by Mike Novogratz, is said to be in the initial phase of generating a $100 million venture fund aimed at supporting burgeoning crypto start-ups. The fund will principally rely on external investors. Traditionally, Galaxy Ventures, the entity's venture subsidiary, utilized its own funds for investment ventures but chose to invite other venture capital groups to participate in its newly established Galaxy Ventures Fund I last year, according to an individual with knowledge of the situation as shared with Bloomberg on April 4. This individual noted that the smallest investment the fund will make in start-ups stands at $1 million.
Through this fund, Galaxy hopes to further invigorate the digital currency sphere by providing financial support for promising nascent enterprises, as reported to Bloomberg. Among its various investments in crypto start-ups, Galaxy Ventures led a $2.7 million funding round for Citrea in February, a project striving to introduce zero-knowledge rollups (ZK-rollups) to Bitcoin.
Beyond this yet-to-be-confirmed fund, Galaxy has been involved in raising and contributing to numerous other funds. Recently, it channeled funds to a $75 million venture capital firm, 1kx, primarily aimed at crypto-focused consumer apps. This news arrives as the crypto world witnesses a resurgence of venture funds after last year's static market performance.
In March, Crypto VC funding marked a more than 50% increase, reaching a staggering figure of $1.16 billion divided among 180 public investment commitments - the most substantial monthly total since April 2022.
Elsewhere, ventures such as RootDataPara and Hack VC are reportedly choreographing sizeable funds of $850 million and $150 million respectively, targeting crypto start-ups. Additionally, Andreessen Horowitz (a16z) has earmarked $30 million for a fund centred on Web3 gaming.
Rejuvenated interest in venture funding coincides with the successfully ratified United States spot Bitcoin (BTC) exchange-traded funds (ETFs) earlier this year, sparking a surge in the cryptocurrency's price value of roughly 50% since the start of the year.
This resurgence hasn't been restricted to Bitcoin alone; the entire cryptocurrency market has experienced a boost. The overall crypto market capitalization at the year's outset hovered around $1.7 trillion; it currently stands at $2.61 trillion, inching closer to its historical peak of $3 trillion, according to CoinGecko data.
Published At
4/4/2024 2:22:42 AM
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