Galaxy Ventures Fund I LP is set to raise $175-180 million, exceeding its $150 million goal, to invest in 30 crypto startups by June 2024. While venture capital in cryptocurrency decreases, reports indicate a slight uptick in funding for 2024. Galaxy’s confidence remains steady as they project long-term growth amidst ongoing market fluctuations.
Galaxy Ventures Fund I LP, led by Michael Novogratz, aims to raise between $175 million to $180 million by June 2024. This fund intends to invest in 30 crypto and blockchain startups, surpassing its initial goal of $150 million. Despite a supportive U.S. administration for the crypto sector, venture capital in this area has been diminishing.
Earlier predictions indicated that 2024 would be challenging for crypto venture capital, notwithstanding potential catalysts like Bitcoin ETFs and the rise of memecoins. According to reports, venture capitalists committed $11.5 billion to the crypto and blockchain industries across 2,153 transactions in 2024, a modest increase from the previous year, but significantly down from 2022.
U.S. investments in crypto VC have reduced by 22%, amounting to approximately $1.3 billion in Q1 2025, as reported by Pitchbook. This decline coincides with a shift towards AI, which attracted 58% of global venture capital funds in the same quarter. In Q1 2023, global crypto VC funding was recorded at $4.8 billion, with a notable investment in Binance from Abu Dhabi’s MGX contributing substantially.
The Galaxy Ventures Fund I had an initial funding close of $113 million in June 2024. Its investment portfolio includes projects such as synthetic dollar issuer Ethena, stablecoin liquidity protocol M^Zero, layer-1 blockchain Monad, and the tokenised asset chain Plume.
Mike Novogratz, CEO of Galaxy Digital, expressed optimism regarding crypto’s potential as both a safe haven and a beacon for new finance in challenging times. He noted that Bitcoin (BTC) serves as a “report card on financial stewardship” and highlights the need for stability for long-term growth in the crypto market.
