Galaxy Ventures Fund Surpasses $180M Target, Despite Crypto VC Slowdown

Michael Novogratz’s Galaxy Ventures Fund I LP has exceeded expectations, raising an estimated $175 million to $180 million by the end of June. Initially aiming for $150 million, this successful fundraising round will fuel investments in approximately 30 promising crypto and blockchain startups.

This achievement is noteworthy considering the current landscape of crypto venture capital. While the US administration offers a supportive environment, funding remains scarce. A Bloomberg report highlighted Galaxy’s success, emphasizing the fund’s focus on payment solutions and stablecoins.

Earlier reports from Galaxy highlighted the challenges faced by the crypto VC sector in 2024, despite market catalysts like Bitcoin ETFs and the memecoin trend. The firm observed that AI applications, while promising, haven’t been ideally suited to venture capital investments. Total crypto VC investment in 2024 reached $11.5 billion across 2,153 deals – slightly higher than 2023 but significantly lower than 2022’s $30 billion.

Data from Pitchbook reveals a further decrease in US crypto VC investments to approximately $1.3 billion in Q1 2025, a 22% decline. This shift correlates with the surge in AI investments, which captured 58% of global venture capital in the same period. However, global crypto VC funding reached $4.8 billion in Q1 2025, marking the highest since Q3 2022, according to CryptoRank. This figure, however, was largely influenced by a significant investment in Binance.

Related: Mike Novogratz’s Galaxy Digital gets SEC nod for Nasdaq listing

Galaxy Ventures Fund I initially closed in June 2024 with $113 million. Initial portfolio companies included Ethena, M^Zero, Monad, Plume, and Renzo. Despite market fluctuations, Galaxy CEO Mike Novogratz remains bullish on crypto, particularly Bitcoin, viewing it as a reflection of financial stewardship and a long-term bet on a new financial system.

“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.”

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