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- Michael Novogratz’s Galaxy Ventures Fund I is set to close at up to $180 million, surpassing its $150 million goal despite a challenging blockchain fundraising climate.
- The fund is investing in 30 startups focused on payments, stablecoins, and foundational blockchain infrastructure like Ethena, Monad, and M^Zero.
- Galaxy’s raise bucks the trend as broader U.S. digital asset VC funding dropped 22% in Q1 2025, with much of the market pivoting toward AI.
Galaxy Ventures Fund I LP, spearheaded by billionaire investor Michael Novogratz, is poised to close its raise between $175 million and $180 million by the end of June. This amount far exceeds its initial target of $150 million. It marks a major milestone for the fund, crafting a high-conviction portfolio of 30 blockchain and digital asset startups. The portfolio has a strong tilt toward payments infrastructure and stablecoin innovation.
According to an April 17 Bloomberg report citing sources familiar with the matter, Galaxy’s fund has already passed its goal, and momentum remains strong despite a difficult fundraising environment. The achievement stands out, especially as venture capital across the blockchain sector has been notably sluggish.
The timing of Galaxy’s fundraising success is particularly striking. While the firm is approaching its $180 million mark, the broader crypto venture landscape remains cautious. Earlier this year, Novogratz’s firm reported that in 2024, global venture capitalists injected $11.5 billion into digital asset startups across 2,153 deals, a marginal increase from 2023’s $10 billion, but still far below the $30+ billion peak of 2022.
The situation hasn’t improved much in 2025. According to PitchBook, U.S.-based crypto VC funding dropped 22% in Q1 to approximately $1.3 billion. There was a significant shift in capital flows toward the AI sector. It dominated 58% of global VC investment during the same period.
Global venture funding in digital assets hit $4.8 billion in Q1, the highest level since Q3 2022. This data comes from a recent report from CryptoRank. Nearly half of that total came from a $2 billion investment in Binance by Abu Dhabi-based firm MGX.
Blockchain focus defines Galaxy Ventures portfolio
Launched in June 2024 with a $113 million first close, Galaxy Ventures Fund I has built a forward-looking portfolio. The portfolio includes Ethena, a synthetic dollar protocol; M^Zero, a stablecoin liquidity platform; and Monad, a high-speed layer-1 blockchain. It also includes Plume, a layer-2 for tokenized real-world assets, and Renzo, derivatives for restaked assets via EigenLayer and Ethereum.
These picks reflect Galaxy’s thesis: to back foundational infrastructure projects. These projects have the potential to redefine the way value moves across the internet and traditional financial rails.
Mike Novogratz remains publicly bullish on the broader digital asset space, despite macro uncertainty and political headwinds. In a recent post on X (Twitter) dated April 16, the Galaxy CEO remarked that Bitcoin is “doing what it’s supposed to.” It serves as both a hedge and a benchmark for trust in global financial systems.
In times of uncertainty, Novogratz wrote it reflects both a 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.”
His perspective underscores Galaxy’s long-term approach: while the hype cycles may shift from memecoins to AI agents, Novogratz is doubling down on the structural transformation. Blockchain technology promises significant change.
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