Despite this decline, global crypto VC funding reached $4.8 billion in the first quarter of 2025, the highest since Q3 2022, largely due to a substantial $2 billion investment in Binance from Abu Dhabi's MGX.

This successful fundraising comes amid a challenging environment for crypto venture capital, even with a supportive administration in the United States.

In this context, Mike Novogratz's Galaxy Ventures Fund I is projected to raise between $175 million and $180 million by the end of June 2025, exceeding its initial $150 million target.

In the broader venture capital landscape, 60% of funding in Q1 2025 was directed toward seed investments between $1 million and $10 million, while AI-focused deals accounted for over 30% of all transactions.

Despite the industry's challenges, the ongoing interest and investment in crypto indicate a resilient sector adapting to the evolving financial landscape.

In 2024, venture capital investments in crypto and blockchain startups totaled $11.5 billion across 2,153 deals, marking a modest increase from $10 billion in 2023 but a significant drop from over $30 billion in 2022.

However, in the first quarter of 2025, crypto venture capital funding in the U.S. fell by 22% to approximately $1.3 billion, as reported by Pitchbook, while investments in AI surged, capturing 58% of global venture capital during the same period.

The fund, which had its initial close in June 2024 raising $113 million, aims to invest in around 30 crypto and blockchain startups, focusing on areas such as payments and stablecoins.

On April 16, 2025, Novogratz expressed confidence in crypto and Bitcoin, stating they are fulfilling their roles as indicators of financial stewardship.

He emphasized the need for calm in the market to foster adoption, positioning crypto as a safe haven during uncertain times.

Novogratz maintains optimism about Bitcoin's long-term potential as a safe haven and a foundational element of a new financial system.