Mike Novogratz's Galaxy Digital is making headlines with its latest strategic move in the crypto space. The company is reportedly laying the groundwork for a $100 million venture fund specifically designed to target early-stage crypto startups.

This development is particularly noteworthy as it represents a departure from Galaxy Ventures' traditional approach of using company funds for investments. By opening up the new Galaxy Ventures Fund I to other venture capitalists, Galaxy is broadening its investment horizons and inviting collaboration within the venture capital ecosystem.

A Strategic Shift for Galaxy Ventures Galaxy Ventures, the venture arm of Galaxy Digital, has historically relied on internal funds for its investment activities. The decision to open up its latest venture fund to external investors is a significant pivot, aimed at leveraging the collective financial muscle and expertise of the wider venture capital community.

With a minimum investment threshold set at $1 million, Galaxy is clearly targeting serious investors who share its vision for the future of digital assets.

"The fund would allow Galaxy to continue fueling the digital asset ecosystem by backing promising early-stage companies," Galaxy told Bloomberg.

Galaxy's Investment Track Record Galaxy Ventures has a proven track record of investing in promising crypto startups. One of its notable investments includes a $2.7 million funding round for Citrea, a project focused on bringing zero-knowledge rollups (ZK-rollups) to Bitcoin.

This is just one example of Galaxy's commitment to supporting innovations that have the potential to transform the crypto landscape.

A Resurgence in Crypto Venture Capital The announcement of Galaxy's new venture fund comes at a time when venture capital is flowing back into the crypto sector. After a somewhat subdued market last year, there has been a significant resurgence in venture funding for crypto startups.

In March alone, crypto VC funding surged by over 50% month-on-month, reaching $1.16 billion across 180 publicly announced investments. This uptick in venture capital activity coincides with a broader rally in the crypto market, underscored by the recent approval of spot Bitcoin ETFs in the United States.

The Broader Crypto Market Rally This resurgence in venture money is not occurring in a vacuum. The broader crypto market has been on a significant upswing, with the total market capitalization rising from around $1.7 trillion at the start of the year to $2.61 trillion.

This rally, driven in part by the performance of Bitcoin, has reinvigorated the crypto space and is drawing more attention and investment into the sector. Galaxy Digital's new venture fund is positioned to capitalize on this momentum, supporting the next generation of crypto startups at a pivotal time in the market's evolution.