Galaxy Ventures Nears $180M Raise Despite Crypto VC Headwinds

Galaxy Ventures Nears $180M Raise Despite Crypto VC Headwinds

Mike Novogratz’s Galaxy Ventures Fund I is on track to close with $175 million to $180 million in capital by the end of June—surpassing its $150 million fundraising target, according to an April 17 Bloomberg report.

The fund, which launched with an initial close of $113 million in June 2024, has built a portfolio of over 30 crypto and blockchain startups. Despite broader market volatility and declining interest in crypto venture capital, Galaxy’s fund has gained strong investor traction, especially in segments like stablecoins, DeFi infrastructure, and tokenized asset platforms.

Galaxy Ventures Fund I has already invested in several notable startups including:

Ethena – a synthetic dollar issuer,

M^Zero – a DeFi protocol focused on stablecoin liquidity,

Monad – a next-gen layer-1 blockchain,

Plume – a layer-2 chain for tokenized assets, and

Renzo – a derivatives protocol for EigenLayer and Ethereum assets.

The fund’s ability to close above target highlights a selective but resilient investor appetite for high-potential blockchain projects, even as the overall crypto VC landscape remains muted.

Crypto VC funding by quarter. Source: CryptoRank

Broader Crypto VC Landscape

Despite some bullish signals in the crypto space—such as the approval of Bitcoin ETFs, the memecoin resurgence, and advancements in AI agents—2024 proved to be a tough year for venture capital, particularly in crypto. Galaxy Digital previously noted that many of these trends, especially AI-driven innovations, aren’t well suited for traditional VC models.

In 2024, venture capitalists invested $11.5 billion across 2,153 crypto and blockchain deals. While slightly up from $10 billion in 2023, this still pales in comparison to the $30+ billion deployed in 2022. U.S.-based crypto VC funding dropped 22% in Q1 2025 to around $1.3 billion, according to PitchBook, as global capital shifted toward artificial intelligence, which now commands 58% of global VC funding.

That said, global crypto VC funding still hit a post-2022 high of $4.8 billion in Q1 2025. Notably, nearly half of this came from a single $2 billion investment in Binance by Abu Dhabi-based MGX, according to CryptoRank.

Novogratz: Crypto is ‘Doing What It’s Supposed To’

Galaxy CEO Mike Novogratz remains optimistic about the role of crypto, particularly Bitcoin. In an April 16 post on X (formerly Twitter), he wrote:

“Crypto is doing what it’s supposed to—acting as a report card on financial stewardship. 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.”

Despite the market’s short-term fluctuations, Galaxy Ventures’ success in surpassing its funding goal signals long-term confidence in the transformative potential of blockchain technology.