Billionaire Mike Novogratz is set to raise up to $180 million for his Galaxy Ventures Fund I LP by June, with the fund focusing on early-stage crypto and blockchain startups. This initiative highlights a growing interest in sectors like payments and stablecoins.

Galaxy Ventures Fund I Targets $180 Million

According to reports, the fund has already exceeded its initial $150 million target and is expected to close between $175 million and $180 million. The final close is scheduled for the end of June, although Galaxy has not publicly disclosed these figures. A spokesperson for the firm declined to comment further.

Investment Focus and Portfolio Highlights

Galaxy Ventures Fund I specializes in backing early-stage companies developing infrastructure and financial tools for the crypto economy. Key investments include:

  • Ethena: A synthetic dollar issuer.
  • M^Zero: A DeFi protocol focused on stablecoins.
  • Monad: A layer-1 blockchain platform.
  • Plume: A chain for asset tokenization.
  • Renzo: Ethereum restaking support via EigenLayer.

Galaxy Ventures Fund I had its first close in June 2024, raising $113 million. At the time, the firm announced its intention to target startups building crypto protocols, software, and financialized applications.

Galaxy’s Commitment to Innovation

“This fund will strengthen our commitment to fostering innovation in the digital asset space, enabling us to back visionary startups and gain unparalleled insights into the emerging technologies that will shape both our company and the future of finance,” said Steve Kurz, Galaxy’s global head of asset management, in a previous statement.

Led by general partners Will Nuelle and Mike Giampapa, the fund aims to build a portfolio of approximately 30 investments designed to help institutions and startups thrive in the on-chain economy.

Challenges in the Crypto Venture Capital Space

Galaxy’s fundraising success comes amid broader challenges in the sector, as crypto venture capital (VC) activity has slowed. In Q1 2025, U.S. crypto venture deals fell by 22% year-on-year to approximately $1.3 billion, according to industry data. Much of the global capital has shifted toward artificial intelligence, which absorbed 58% of total VC investments during the same period.

Crypto VC deal sizes have also contracted significantly. Analytics reveal that median deal sizes have dropped nearly 90% since 2018, reflecting increased caution among investors despite Bitcoin’s milestone of reaching $100,000 in late 2024.

Market Outlook for Crypto VC Funding

Despite the current downturn, some analysts remain optimistic. PitchBook’s Robert Le emphasized that today’s founders need more than just technical white papers to secure funding. He projected that venture capital investments in crypto could rebound in 2025, potentially exceeding $18 billion.

Galaxy Ventures Fund I’s progress underscores the growing demand for innovative blockchain solutions, even as the sector navigates economic uncertainties. With its focus on early-stage startups, the fund could play a pivotal role in driving the next wave of crypto and blockchain advancements.

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