Michael Novogratz’s Galaxy Raises $113 Million for a New Crypto Venture Fund

(Bloomberg) — Billionaire Michael Novogratz’s Galaxy Asset Management unit has raised $113 million for a venture fund that invests in early-stage startups focused on crypto software, infrastructure and financial applications.

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Galaxy Ventures Fund I LP will aim to build a portfolio of about 30 investments. It has already put money into projects such as Ethena, Monad and Plume. New York-based Galaxy Digital Holdings said Thursday that the fund expects to continue raising funds to reach its $150 million goal by next year at the latest.

Digital asset firm Galaxy Ventures has long invested between $30 million and $50 million of Galaxy’s own money annually in various crypto startups, focusing on areas such as infrastructure, decentralized finance and payments. Last year, Galaxy decided to move the group into asset management and launch Galaxy Ventures Fund I, which is open to external investors.

“Our macro view is that blockchains will be used to resolve the majority of transactions,” General Partner Mike Giampapa said in an interview. “That’s a one-, two-decade transition that we’re betting on.” The fund expects to invest between $3 million and $5 million per project, but the amount could vary, said the fund’s other general partner, Will Nuelle.

The fund is another sign of a revival in venture capital investment in crypto, with firms like Pantera Capital and Paradigm raising new funds. Rising crypto prices are driving much of the investor enthusiasm, with Bitcoin hitting a new all-time high in March. The possibility of a better regulatory environment for the sector in the U.S., depending on the outcome of this year’s presidential election, is also supporting growth.

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