Novogratz’s Galaxy secures $113m for new fund to back early-stage protocols

Galaxy Asset Management has raised $113 million for a new venture fund that invests in early-stage startups focused on crypto software, infrastructure, and financial applications.

Michael Novogratz’s crypto bank Galaxy Digital has raised $113 million for a new fund focused on backing early-stage companies in the space of crypto protocols, software, and financialized applications.

The new fund has received investment from institutional allocators, family offices and high-net-worth individuals, and began raising funds in Q2, Galaxy Asset Management said in a July 25 press release. The venture capital firm added that it expects to “continue raising funds into next year and meet or exceed the fund’s $150 million target.”

“This fund will strengthen our commitment to driving innovation in the digital asset space, enabling us to support visionary startups and gain unique insights into emerging technologies that will shape both our company and the future of finance.”

Steve Kurz, head of global asset management at Galaxy Digital

The fund, led by General Partners Will Nuelle and Mike Giampapa, will focus on companies that are “advancing digital asset innovation and enabling financial institutions, startups and markets to participate in the on-chain future,” the firm said, adding that the team’s goal is to “build a portfolio of approximately 30 investments.”

Galaxy joins other crypto startup giants that are intensifying their strategies as the market shows signs of recovery. In late April, reports suggested that another crypto VC firm, Pantera Capital, was also planning to raise over $1 billion for a new fund offering investors exposure to blockchain assets. In June, crypto-focused VC firm Paradigm raised $850 million for its third fund, which will focus on “earliest-stage crypto projects.”