Galaxy Secures $175M Venture Fund to Boost Early-Stage Blockchain Startups
Galaxy Asset Management Closes Inaugural Galaxy Ventures Fund I with Over $175 Million
Successful Fundraising for Galaxy Ventures Fund I
Galaxy Asset Management, the investment division of Galaxy Digital, has officially announced the successful closure of its first-ever Galaxy Ventures Fund I (GVF I). The fund has garnered over $175 million in commitments, exceeding its initial target of $150 million by more than 16%. This oversubscription reflects a strong interest from a varied group of limited partners, including institutional investors, family offices, and corporate strategic investors, although specific names have not been disclosed.
Investment Strategy and Focus Areas
Galaxy Ventures Fund I, co-led by Will Nuelle and Mike Giampapa, aims to invest in approximately 30 startups over the next 18 to 24 months. The fund will also allocate follow-on reserves to support its portfolio companies in subsequent financing rounds. This marks a significant shift for Galaxy, as it transitions from a balance-sheet-only investment model to a more traditional limited-partner structure, allowing for external investments in its venture activities. Notably, Galaxy Digital has been publicly traded on Nasdaq under the ticker GLXY since May 16, 2025.
Targeted Startups and Investment Categories
The fund is set to focus on early-stage companies that are laying the groundwork for the on-chain economy. Its investment strategy will encompass several key categories, including:
- Stablecoin & Payments: Supporting projects that are developing advanced payment systems and collateral frameworks.
- DeFi Protocols: Investing in decentralized exchanges, lending platforms, and on-chain derivatives.
- Infrastructure & Tools: Funding initiatives that enhance developer tools, cross-chain interoperability, and data analytics solutions for robust on-chain applications.
Additionally, the fund’s backing by Galaxy’s extensive platform provides portfolio companies with access to a global workforce of over 550 employees and valuable industry connections. Beyond financial support, startups will benefit from Galaxy’s in-house “Ventures Platform,” which offers market entry assistance, compliance support, and technical expertise to expedite product development.
Market Context and Future Outlook
As Galaxy Ventures Fund I closes its fundraising round, the broader market context indicates that Q2 2025 may not match the funding levels seen in Q1 2025, despite a surge in mergers and acquisitions and IPO activities. Data from Messari reveals that during the week of June 16-22, 23 projects raised approximately $190 million, led by EigenLabs and PrismaX. Earlier in May, 25 projects secured $109 million, with Conduit’s $36 million Series A being a highlight.
This recent fundraising success suggests a potentially more favorable landscape for web3 startups in Q3 2025. Since its initial closing, Galaxy Ventures has already invested around $50 million in several promising companies, including Monad, a blockchain designed for low-latency trading, and Ethena, a yield-bearing stablecoin protocol.
As regulatory clarity improves and on-chain applications evolve, GVF I is well-positioned to leverage the maturation of blockchain technology into mainstream financial and enterprise solutions.
Disclaimer: The views expressed in this article are those of the author and may be influenced by market conditions. Conduct thorough research before making any investment decisions in cryptocurrencies. The author or publication is not liable for any personal financial losses.
