Galaxy Ventures Fund I LP, which billionaire investor Mike Novogratz runs, is going against the grain even though crypto venture capital is still cold. A story from April 17 by Bloomberg says the fund will likely raise between $175 million and $180 million, much more than its original goal of $150 million. This fundraising milestone is impressive in a VC world where investors are cautious, and investors’ goals are changing.
The fund raised $113 million at its “initial close” in June 2024. Since then, Galaxy Ventures has been focusing on important areas like payments and stablecoins, looking for new projects that will change the way crypto works.
VC Winter
Crypto venture funding has been challenging. Overall, venture capitalists were not very excited about the industry, even though there were positive factors such as Bitcoin ETFs, meme coin booms, and the rise of AI agents. Novogratz’s company agreed that these market trends weren’t the best fit for venture capital funding strategies.
According to their own study, in 2024, venture capitalists invested $11.5 billion in 2,153 deals in crypto and blockchain startups. That is a small increase from the $10 billion invested in the sector in 2023, but it’s not even close to the $30 billion invested in it in 2022.
A Strategic Portfolio Built on Blockchain
Galaxy Ventures aren’t just about money but also smart bets. Some of the growing stars in their portfolio are Ethena (a synthetic dollar issuer), M^Zero (a DeFi stablecoin liquidity protocol), and Monad, a promising layer-1 blockchain. They also support Plume, a layer-2 tokenized asset chain, and Reno, a system that works with Ethereum’s EigenLayer to allow for derivative innovation.
Crypto Is “Doing What It’s Supposed to Do”
Mike Novogratz, CEO of Galaxy, is still optimistic about cryptocurrencies, especially Bitcoin. On April 16, he wrote on X (formerly Twitter) that crypto is “acting as a report card on financial stewardship.” He said that Bitcoin is a “flight to safety” and a “long-term bet on a new financial system” in times of instability.
Conclusion
Galaxy Ventures raised more than $150 million and are now working towards $180 million. This shows that savvy investors still believe in the long-term promise of blockchain technology.
