Could It Boost VC Funding? – Crypto News

Galaxy Digital, the leading investment management firm of Michael Novogratz, has received SEC approval for its registration statement and plans to list on Nasdaq in May 2025.

Set to be listed with ticker symbol GLXY, its public listing will also impact the operations of its venture capital arm, Galaxy Ventures.

Galaxy Digital has spent the past few years building a multi-faceted empire across trading, asset management, mining, and principal investments. But one of its most dynamic branches has been Galaxy Ventures, the firm’s venture arm, which has backed dozens of early-stage Web3 startups.

As the capital provider and supporter of major projects like Fireblocks, Ethena, Plume, 1inch Network, Galaxy Ventures has been supporting the growth of varous digital assets and Blockchain startups in the Web3 landscape.

Big milestone for @GalaxyHQ! Our registration statement is now effective with the SEC. We’re on track to list on Nasdaq shortly after our shareholder vote on May 9, contingent on completing our reorganization. Let’s go! https://t.co/bbIgQNnMxH

— Mike Novogratz (@novogratz) April 7, 2025

And now as the leading VC firm sets for public listing on one of the largest stock exchanges in the world (NASDAQ), certain innovative projects can hawk their eyes on its increasing investment portfolio once it gets listed. Here’s How:

Enhanced Capital Base of Galaxy Digital Post-Listing

A key advantage of listing of Galaxy Digital on Nasdaq is access to a broader base of institutional investors. Public markets would provide Galaxy with more liquidity, transparency, and visibility. Basically, this access facilitates the issuance of additional shares or debt instruments, thereby increasing the firm’s capital base.

And these crucial factors will trickle down to its VC firm, strengthening its fundraising capabilities. and bolster its ability to deploy capital into early-stage projects.

Further, being a public company would give Galaxy stronger financial leverage and trust in the market. Web3 founders often look for partners who bring not just capital, but credibility and long-term commitment. This is due to the fact that in crypto particularly, credibility is crucial — where lots of investors disappear in downturns. A Nasdaq listing checks both boxes.

No doubt, Galaxy’s VC unit has already been active, having invested in projects such as Animoca Brands, Holaplex, and Chaos Labs.

But its public listing becomes all the more important as Crypto VC investments fail to align with the growing pro-crypto environment in the United States. According to Pitchbook, VC Fundings in Web3 projects have witnesed y-o-y decrease of 22% in Q1 of 2025.

Notably, Galaxy, in its own report for Q4 2024 concluded that last year was difficult for VC Fundings.

Increased Visibility & Credibility

Being listed on Nasdaq would also enhance Galaxy’s brand in the eyes of founders and LPs (limited partners). This will potentially help them win better deal flow and raise more for future funds.

Startups can view this as an endorsement of Galaxy’s staying power, particularly valuable in a post-bull market climate where longevity matters as much as funding size. Notably, it recently ended up paying a $200 million fine for a settlement with the New York Attorney General’s (NYAG) office.

Can other Crypto VCs follow on Galaxy Digital’s Line

Speaking broadly, Galaxy Digital’s listing could also create ripple effects in the broader crypto VC ecosystem. As one of the largest U.S.-based crypto firms to go public, it might pave the way for other players like Pantera Capital, Multicoin, or Framework Ventures to explore public offerings or SPAC mergers in the future.

Additionally, it may invite more traditional venture capital firms to deepen their exposure to digital assets through partnerships or co-investment opportunities with Galaxy. In turn, this could help bridge the long-standing gap between Web2 VC and Web3 innovation.

Final Thoughts

Of course, going public isn’t a silver bullet. Galaxy will now be under greater regulatory scrutiny and quarterly earnings pressure. Public market volatility, particularly tied to crypto cycles, may also affect its share price—and by extension, investor sentiment around its VC activities.

Still, Galaxy Digital’s upcoming Nasdaq listing represents more than a financial milestone—it’s a strategic pivot that could amplify its presence in venture capital. By combining Wall Street access with crypto-native expertise, Galaxy can stand at the crossroads of institutional finance and decentralized innovation.

To conclude, for startups, LPs, and even rival VCs, this listing could redefine what it means to be a serious, scalable, and regulated player in the Web3 world.

Disclaimer: The content may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.