Key Takeaways:
- Galaxy Digital’s venture division announces the Galaxy Ventures Fund I, a new $100 million fund aimed at investing in early-stage crypto startups, shifting from solely using its own capital to attracting outside venture capital.
- The fund focuses on minimum investments of $1 million to support growth in the digital asset ecosystem, highlighted by a $2.7 million investment in Citrea for integrating ZK-rollups with Bitcoin.
- Amidst a revitalized interest in cryptocurrency from venture capital, marked by increased funding and the positive market impact of U.S. spot Bitcoin ETF approvals, the crypto market cap approaches its previous $3 trillion peak.
Galaxy Digital’s venture division is currently laying the groundwork for a new $100 million fund designed to invest in crypto startups.
This move places Galaxy Digital alongside other venture capital firms that are increasingly re-engaging with the cryptocurrency sector.
Michael Novogratz’s Galaxy Digital is in the early stages of raising a new venture fund, with most of its targeted $100 million expected to come from outside investors https://t.co/ogw4OdsLmJ
— Bloomberg Crypto (@crypto) April 3, 2024
The fund, dubbed Galaxy Ventures Fund I, marks a shift in strategy for Galaxy Ventures, which traditionally invested its own capital in startups.
Now, it’s looking to attract additional funding from outside venture capitalists, based on insights shared with Bloomberg on April 4.
One of the key strategies of this new fund is to make minimum investments of $1 million in promising early-stage companies.
Novogratz’s crypto firm Galaxy Digital is raising a new $100mn venture fund for crypto companies pic.twitter.com/LDrZu6n4sj
— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) April 3, 2024
This initiative is part of Galaxy’s broader goal to stimulate growth within the digital asset ecosystem by supporting innovative startups.
Among Galaxy Ventures’ notable investments is a $2.7 million lead in a funding round for Citrea in February.
Citrea is a project dedicated to integrating zero-knowledge rollups (ZK-rollups) with Bitcoin, showcasing Galaxy’s commitment to backing groundbreaking technological advancements in the crypto space.
Galaxy Digital to launch $100 million fund for early-stage crypto companies: report https://t.co/PxsuwJGenC
— The Block (@TheBlock__) April 3, 2024
Beyond this, Galaxy has been active in raising funds and contributing to various ventures, including a recent $75 million injection into a fund managed by VC firm 1kx, which focuses on crypto-based consumer applications.
This news arrives at a time when venture capital interest in cryptocurrency is rebounding, following a period of stagnation in the market last year.
March saw a significant uptick in crypto VC funding, with $1.16 billion raised across 180 deals—the most substantial monthly total since April 2022, according to RootData.
Other venture firms are also increasing their crypto investments, with Para aiming for an $850 million fund,
Paradigm in talks of raising up to $850 million for new crypto fund: report https://t.co/eOrBKR1xk1
— The Block (@TheBlock__) April 2, 2024
Hack VC assembling $150 million for crypto startups, and Andreessen Horowitz (a16z) dedicating $30 million to a Web3 gaming-focused fund.
The resurgence of venture capital interest coincides with the positive market response to the U.S. approval of spot Bitcoin exchange-traded funds (ETFs) in January, which has contributed to a roughly 50% increase in Bitcoin’s price year-to-date.
🚨 JUST IN: Galaxy Digital announces a $100 million fund for early-stage crypto startups, aiming to support up to 30 companies over three years.
— Satoshi Club (@esatoshiclub) April 3, 2024
Consequently, the total market capitalization of cryptocurrencies has surged from $1.7 trillion at the start of the year to $2.61 trillion, approaching its previous peak of $3 trillion, as reported by CoinGecko.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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