Mike Novogratz's Galaxy Digital is making a big bet on the future of crypto. The crypto investment giant is launching a $100 million venture fund, Galaxy Ventures Fund I, to back early-stage crypto startups.

This marks a shift in strategy for Galaxy Ventures, which previously used its own capital for investments. Now, they're opening their doors to outside investors, most likely venture capitalists looking to get a piece of the booming crypto pie.

The fund will focus on promising early-stage companies, with a minimum investment of $1 million per startup. This fresh injection of capital will allow Galaxy to play a more prominent role in nurturing the crypto ecosystem.

Galaxy Ventures already has a track record of backing innovative projects. In February, they led a $2.7 million funding round for Citrea, a project aiming to bring zero-knowledge rollups (ZK-rollups) to Bitcoin.

This new fund isn't happening in a vacuum. Venture capital is pouring back into crypto after a lull in 2023. Crypto VC funding skyrocketed over 50% in March, reaching a staggering $1.16 billion. This surge coincides with Bitcoin's impressive run in 2024, which has dragged the entire crypto market upwards.

Galaxy Digital isn't the only player joining the funding frenzy. Para is reportedly raising a massive $850 million fund, while Hack VC and Andreessen Horowitz (a16z) are also putting their money behind promising crypto and Web3 projects.

With the crypto market nearing its all-time high again, the future looks bright for innovative blockchain startups. Galaxy Digital's $100 million venture fund is just another sign that the crypto industry is here to stay, and it's attracting big money from traditional investors.