TLDR:
Galaxy Digital has announced a $100 million fund to support early-stage crypto startups, marking a shift in their investment strategy. The fund, named Galaxy Ventures Fund I, LP, aims to back up to 30 startups over the next three years with investments starting at $1 million. This move aligns with a trend of renewed interest in crypto venture capital, as highlighted by research from Galaxy Digital itself.
Article Summary:
Galaxy Digital, a prominent player in the cryptocurrency sector, has launched a $100 million fund to bolster the growth of promising early-stage crypto startups. The fund, known as Galaxy Ventures Fund I, LP, will focus on financial applications, software infrastructure, and crypto protocols, aiming to support up to 30 companies in the next three years. This initiative marks a shift for Galaxy Digital’s venture team as they engage with outside investors for the first time.
The launch of this ambitious fund reflects a broader trend of renewed interest in crypto venture capital within the industry. Galaxy Digital’s move comes in the wake of collaborations between other major players in the space, such as Marc Andreessen, Accolade Partners, and 1kx network, as well as reports of fundraising efforts from firms like Paradigm and Hack VC. Research released by Galaxy Digital earlier this year suggests that venture fundraising strategies in the crypto sector correlate with increased demand for crypto assets.
While institutional interest in crypto venture capital faced challenges in 2023 due to market dynamics, the report anticipates a potential resurgence in 2024 if crypto-native allocators reinvest. The global VC deal percentages in blockchain or crypto by stage have shown fluctuations, with total funding in the sector seeing a significant drop in 2023 compared to previous years. However, despite these challenges, Galaxy Digital’s latest fund signals a vote of confidence in the future growth of the blockchain and crypto ecosystem.
