Galaxy Raises $175M to Supercharge Early-Stage Crypto Startups Amid Market Headwinds

Key Takeaways:

• Galaxy Digital secures over $175 million for its first external venture fund, exceeding its $150M target.
• The fund targets infrastructure and applications driving stablecoins, tokenization, and onchain payments.
• Galaxy’s move signals growing institutional confidence in real-world crypto adoption despite market volatility.

Galaxy Digital, one of the most prominent players in the digital asset space, has officially closed its first externally-backed crypto venture fund—Galaxy Ventures Fund I—at more than $175 million, surpassing its initial target of $150 million. The successful raise marks a significant milestone as the company doubles down on early-stage crypto infrastructure and real-world blockchain applications, even during a subdued fundraising environment across the broader crypto industry.

Read More: Galaxy Digital acquires crypto custody and asset infrastructure provider BitGo

Galaxy Ventures Fund I—Positioning for the Next Phase of Onchain Growth

The newly launched Galaxy Ventures Fund I (GVF I) will focus on startups that are building core components of the onchain economy. These include sectors such as:

• Stablecoin infrastructure
• Payment rails
• Real-world asset tokenization
• Underlying blockchain protocols and development tools

Galaxy aims to back founders at the earliest stages—pre-seed to Series A—and help scale projects through its broad crypto-native ecosystem.

From Balance Sheet to Institutional Capital

Prior to GVF I, Galaxy had been deploying capital into crypto startups directly from its balance sheet since 2018. This first-time inclusion of external limited partners (LPs) shows a strategic pivot: moving from internal venture operations to a more structured, institutionalized venture fund model.

The firm attracted a diverse group of backers, including global institutional investors, family offices, and strategic digital asset companies. Notably, Galaxy remains an anchor investor in the fund, holding both general partner and limited partner positions.

This structure enables Galaxy to maintain high conviction in its investments while expanding its reach by leveraging outside capital.

What Startups Is Galaxy Backing?

Galaxy Ventures’ portfolio already includes over 120 companies, combining both legacy balance-sheet investments and the new GVF I fund.

Some of the standout names include:

• Monad: A high-performance Layer-1 blockchain designed to compete with Solana and Aptos on speed and scalability.
• Ethena: Issuer of a synthetic stablecoin offering yield-bearing solutions, aiming to solve volatility without traditional fiat backing.
• Arch Lending: A DeFi protocol focused on credit markets and real-world asset lending.
• Plume, Rain, and RedotPay: Platforms focused on integrating digital asset payments and financial infrastructure across borders.

These investments show a clear focus on foundational technologies with real-world use cases, rather than speculative projects. Galaxy is placing its bets on blockchain products that offer utility, compliance readiness, and institutional compatibility.

Read More: Galaxy Digital Obtains FCA License, Paving Path for UK Derivatives Trading

Why This Fundraise Matters Now

The successful close of GVF I comes at a time when crypto venture capital has significantly contracted. According to data from Galaxy Research, Q1 2025 marked one of the lowest funding periods for crypto startups in the last three years, with only a few breakout raises.

That makes this $175 million raise all the more impressive.

Confidence in Onchain Finance and Tokenization

Galaxy executives say the fund is aimed squarely at the next wave of crypto adoption, which revolves around tangible, regulated applications.

“Blockchain infrastructure is poised to revolutionize global financial markets. We’re seeing accelerating adoption from both institutions and retail, particularly in payments and capital markets,” said Mike Giampapa, General Partner at Galaxy Ventures.

Giampapa emphasized that GVF I’s strategy reflects a shift in the broader market: away from speculative assets, and toward projects that offer immediate value through efficient, compliant financial products.

Galaxy’s Strategic Edge in the Crypto Ecosystem

Galaxy isn’t just deploying capital—it’s providing startups access to a broad ecosystem. With more than 550 employees across digital asset trading, lending, staking and custody, the firm offers deep operational support.

Portfolio companies benefit from:

• Technical assistance via the Ventures Platform team
• Connectivity to Galaxy’s trading desks, infrastructure arms, and partner networks
• Strategic guidance from executives like Mike Novogratz, a seasoned investor with deep Wall Street and crypto roots

This kind of hands-on support is what separates Galaxy from traditional VC firms passively supplying capital, but no industry-native backing.

In fact, Novogratz highlighted this advantage in the announcement:

“Closing above target in one of the toughest crypto fundraising climates shows how our team brings a unique edge to the table. We’re committed to supporting startups building real-world use cases shaping the next era of crypto.”

Institutional Demand Is Back—Quietly But Steadily

While mainstream headlines often focus on crypto’s volatility, behind the scenes, there is a quiet resurgence of institutional interest.

Galaxy’s venture raise also comes as trailing indicators of real capital re-entering the market –accordioning in cautiously, and at least as much out the other side – are finally beginning to emerge:

• In 2025, BlackRock, Fidelity, and Franklin Templeton rolled out or expanded tokenized funds.
• Volumes of stablecoins on networks like Ethereum and Tron exceeded $1.3 trillion in Q1 2025, indicating a demand for programmable dollars.
• Traditional banks such as HSBC and Standard Chartered are piloting onchain settlement rails and tokenized gold products.

GVF I puts Galaxy at the center of this evolution, complementing Web3 to traditional finance connections between customers, partners, and developers through deals involving the fund.

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