Michael Novogratz’s Galaxy Ventures Fund I LP is anticipated to raise approximately $175 million to $180 million by the end of June, marking a significant milestone as the firm aims to build a diverse portfolio of 30 crypto and blockchain startups. According to a report from Bloomberg dated April 17, this impressive funding goal has already surpassed the initial target of $150 million, indicating a robust interest in the crypto sector despite prevailing market challenges.
This upward trend in fundraising comes at a precarious time when crypto venture capital is scarce, even within an industry-friendly administration in the United States. Earlier this year, Galaxy Ventures highlighted that 2024 had proven to be a difficult year for crypto VC investment, despite the presence of potential market influencers such as Bitcoin ETFs, the memecoin phenomenon, and advancements in AI. Their analyses suggested that many of these factors were not ideally aligned with traditional venture capital interests.
The report noted that in 2024, $11.5 billion was invested in crypto and blockchain-focused startups across 2,153 deals. Although this figure shows a slight increase from $10 billion in 2023, it is a substantial drop from the over $30 billion invested in 2022. The trend continues with American crypto VC investments plummeting by 22% to around $1.3 billion in the first quarter of 2025, according to Pitchbook. This report also indicated a significant shift towards artificial intelligence, with AI startups capturing 58% of global venture dollars in the same period.
Interestingly, global crypto VC funding reached $4.8 billion in Q1 2025, representing the highest level since Q3 of 2022. However, it is worth noting that a single investment of $2 billion in Binance by Abu Dhabi investment firm MGX constituted nearly half of this total, underscoring the influential role of major players in the market.
In June 2024, the Galaxy Ventures Fund I recorded its initial close at $113 million, with a portfolio that includes innovative entities such as Ethena, a synthetic dollar issuer; M^Zero, a stablecoin liquidity DeFi protocol; and Monad, a layer-1 blockchain. These startups illustrate Galaxy’s strategic focus on pivotal areas within the crypto landscape.
Optimism Amidst Uncertainty
In light of these developments, Galaxy CEO Mike Novogratz remains optimistic about the future of crypto and Bitcoin. On April 16, Novogratz articulated his confidence on social media, emphasizing that Bitcoin is performing as intended, serving as a reliable indicator of financial management.
“In times of uncertainty, it reflects both the flight to safety and a long-term bet on a new financial system. But as a young asset, it still needs calm to grow. Adoption doesn’t thrive in disorder.”
The ongoing efforts of Galaxy Ventures encapsulate a significant narrative within the broader crypto ecosystem—one that reflects both the challenges and opportunities for investors in a rapidly evolving landscape. As the firm inches closer to its fundraising goal, there is a sense of cautious optimism that may herald a new chapter for crypto venture capital.
