Galaxy Eyes $100M Crypto Fund Amid VC Revival, Targets 30 Startups

Galaxy Digital to invest $100M in early-stage crypto startups, signaling cautious VC market revival.

By Alex P. Chase

4/3, 14:55 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Galaxy Digital plans to raise $100M for its first venture fund, Galaxy Ventures Fund I, LP, targeting early-stage crypto companies.
  • The fund aims to invest in up to 30 startups over three years with investments starting at $1 million each.
  • This move transitions Galaxy from investing its own funds into leveraging outside capital, building on its $200M investment in over 100 projects.

Galaxy Digital Launches $100 Million Fund

Galaxy Digital, a leading name in the crypto investment space, is setting up a new venture with a $100 million fund aimed at early-stage crypto companies. This initiative, named Galaxy Ventures Fund I, LP, is a strategic move to invest in up to 30 startups over the next three years, focusing on financial applications, software infrastructure, and protocols within the crypto realm. This marks a significant shift as Galaxy transitions its venture capital franchise into its asset management business, leveraging its history of investing $200 million in over 100 projects with its own funds to now include outside investors' capital.

Crypto VC Market Sees Tentative Revival

The crypto venture capital scene is witnessing a cautious resurgence, highlighted by the formation of a $75 million crypto VC fund by 1kx, with backing from prominent investors including Marc Andreessen, Accolade Partners, and Galaxy Digital. This fund aims to capitalize on the current market conditions where valuations remain "very reasonable and lowered," according to 1kx founding partner Lasse Clausen. Despite the broader market recovery and Bitcoin's price surge, venture capital funding in crypto has been slow to follow, presenting a unique opportunity for early-stage investments.

Strategic Focus on Consumer Applications

1kx, co-founded by Lasse Clausen and Christopher Heymann, has already directed its new $75 million fund towards approximately five startups, focusing on consumer-targeted crypto applications. This strategic investment direction aligns with the broader trend of venture capital firms cautiously re-entering the crypto market, encouraged by recent regulatory advancements and the sector's price upticks. 1kx's portfolio includes investments in notable projects such as Kiln, Pudgy Penguins, Rarible, and The Sandbox, showcasing its commitment to fostering innovation within the crypto ecosystem.