Galaxy Digital Holdings is reportedly talking with outside investors to assemble a $100 million fund to invest in early-stage crypto companies.
The planned Galaxy Ventures Fund I will focus on financial applications, software infrastructure and protocols building in crypto, aiming to invest in as many as 30 startups over three years, CoinDesk reported Wednesday (April 3), citing an investor email.
Galaxy Digital Holdings did not immediately reply to PYMNTS’ request for comment.
While Galaxy Digital has long invested in crypto companies, this will be the first time its venture team has done so with outside investors’ capital along with its own, according to the report.
Over the past six years, the firm has invested $200 million into 100 projects involving crypto companies, the report said.
This news comes a day after it was reported that crypto-focused venture capital (VC) fund Paradigm is in talks with investors to raise between $750 million and $850 million for a new fund.
In 2021, Paradigm raised $2.5 billion, the largest crypto fund ever at the time.
On Feb. 20, Web3 VC firm Hack VC closed an oversubscribed $150 million Venture Fund I to invest in early-stage Web3 opportunities, saying its investment strategy focuses on Web3 infrastructure, financial infrastructure, and the intersection of Web3 and artificial intelligence (AI).
The latest fund joined Hack VC’s $200 million initial seed fund, bringing the firm’s aggregate commitments across the two funds to $350 million and its total assets under management to about $425 million.
“With millions of users and regulatory clarity emerging across the world, it is clear that Web3 is here to stay,” Alex Pack, a managing partner at Hack VC, said when announcing its latest fund. “Yet, like the early days of the internet, Web3 still requires an infrastructural paradigm shift in scalability, security and usability before it is ready for mainstream usage.”
VC investment in the crypto industry plummeted to just $9.5 billion in 2023, less than a third of the previous year’s total, as scandal and regulatory issues took a toll on fundraising efforts.
Now, with crypto making a comeback, more VC firms are looking to raise funds.