Galaxy Ventures Fund I LP, spearheaded by Michael Novogratz, is on track to raise between $175 million and $180 million by the end of June, surpassing its original $150 million target.
The capital will be used to support a portfolio of approximately 30 startups focused on crypto and blockchain infrastructure, with an emphasis on stablecoins and payment systems, according to an April 17 Bloomberg report citing sources familiar with the matter.
The fund’s progress is noteworthy given the broader slowdown in crypto venture capital.
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2024 Was a Challenging Year for Crypto VCs
Despite signs of renewed retail interest driven by Bitcoin ETFs, meme coin speculation, and AI integrations, Novogratz’s firm acknowledged that 2024 was a challenging year for crypto VCs.
Galaxy Digital previously stated that these trends—particularly the rise of AI agents—were not inherently compatible with traditional venture funding models.
Data supports that caution. Venture capitalists poured $11.5 billion into the crypto and blockchain sector in 2024 across 2,153 deals—up slightly from $10 billion in 2023 but a sharp decline from over $30 billion during the 2022 bull run.
U.S.-based crypto VC activity has also slowed in 2025, with PitchBook reporting a 22% drop in funding during Q1, totaling around $1.3 billion. Meanwhile, AI-related startups have absorbed 58% of global venture dollars so far this year.
Globally, Q1 2025 saw crypto VC funding hit $4.8 billion—the highest since Q3 2022—according to CryptoRank. However, a $2 billion investment in Binance by Abu Dhabi’s MGX accounted for nearly half of that figure, suggesting the rebound is still uneven.
Galaxy Ventures Fund I initially raised $113 million during its first close in June 2024.
Its portfolio already includes synthetic dollar platform Ethena, DeFi stablecoin protocol M^Zero, Layer-1 network Monad, tokenized asset Layer-2 chain Plume, and Renzo, which supports derivative staking on Ethereum via EigenLayer.
Despite market turbulence, Novogratz remains optimistic. In an April 16 post on X, he said Bitcoin is “acting as a report card on financial stewardship,” adding that during uncertainty, it serves as both a safe haven and a long-term bet on a new financial system.
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Crypto VC Funding Surges to $7.3B in Q1 Despite Market Lull
Crypto venture capital funding surged in Q1 2025, reaching $7.3 billion across 550 deals, according to Messari. March saw a notable uptick in activity, even as major cryptocurrencies remained relatively flat.
~$154 million in venture funding this week.
Q1 closing with $7.3B+ raised across more than 550 rounds. https://t.co/aPQcrAdnG6
— Messari (@MessariCrypto) March 28, 2025
Despite subdued performance from major cryptocurrencies, VC enthusiasm remained strong, especially for early-stage rounds. Seed investments between $1M and $10M accounted for around 60% of all funding, while larger rounds over $50M made up just over 6%.
A key driver of this resurgence is the surge in AI-related investments. Over 30% of Q1 deals focused on AI platforms and infrastructure, with top-tier funds allocating between 14% and 22% of their portfolios to AI.
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Key Takeaways
- Galaxy Ventures is set to raise up to $180M to fund 30 crypto startups, surpassing its original goal.
- The raise comes despite a broader crypto VC slowdown, with 2024 seeing a sharp drop from 2022 highs.
- AI investments dominated Q1 2025, driving over 30% of deals and reshaping venture capital priorities.
The post Galaxy Ventures Targets $180M Raise To Back 30 Crypto Startups By June appeared first on 99Bitcoins.
