Galaxy Ventures Fund I LP, led by Michael Novogratz, is on track to secure between $175 million and $180 million by the end of June, surpassing its initial target of $150 million. The funds will aid around 30 startups focused on crypto and blockchain infrastructure, particularly in stablecoins and payment systems, as reported by Bloomberg on April 17, citing anonymous sources.

The fund’s achievement is significant, considering the general decline in crypto venture capital activities.

2024 Was a Challenging Year for Crypto VCs

Despite signs of renewed retail interest led by Bitcoin ETFs, speculation around meme coins, and integration of AI, Novogratz’s firm recognized 2024 as a tough year for crypto VCs. Galaxy Digital previously mentioned that these trends, especially the rise of AI agents, are not ideally aligned with traditional venture funding frameworks.

Statistics show that venture capitalists invested $11.5 billion in the crypto and blockchain sector in 2024 from 2,153 deals, a slight increase from $10 billion in 2023, but a steep drop from over $30 billion during the bullish phase of 2022.

Activity from U.S.-based crypto VCs has also diminished in 2025, with PitchBook reporting a 22% decrease in funding for Q1, summing up to approximately $1.3 billion. Meanwhile, AI-driven startups captured 58% of total venture funding so far this year.

Globally, Q1 2025 witnessed crypto VC funding reach $4.8 billion, marking 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 total, indicating an uneven recovery.

The 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 facilitates derivative staking on Ethereum via EigenLayer.

Despite market volatility, Novogratz remains hopeful. “Bitcoin acts as a report card on financial stewardship,” he stated on X on April 16, adding that in times of uncertainty, it serves as both a safe haven and a long-term investment in a new financial framework.

Crypto VC Funding Surges to $7.3B in Q1 Despite Market Lull

In the first quarter of 2025, crypto venture capital funding surged to $7.3 billion across 550 deals, as reported by Messari. March highlighted a notable increase in activity, even as major cryptocurrencies exhibited stability.

~$154 million in venture funding this week. Q1 concluded with $7.3B+ raised across over 550 rounds. Source

Despite the subdued performance of major cryptocurrencies, the VC interest remains robust, particularly in early-stage investments. Seed funding ranging from $1M to $10M represented about 60% of all funding, whereas larger rounds exceeding $50M constituted just over 6%.

A primary catalyst for this resurgence is the growing focus on AI-related investments. More than 30% of Q1 deals revolved around AI platforms and infrastructure, with top-tier funds dedicating between 14% and 22% of their portfolios to AI.

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