GRUB2 failed with 'No video mode activated'
Solution 1:
Basically, Grub2 is trying to load some fonts and cannot because they are located on the encrypted partition.
The bugreport + fix are located here :
FIX on comment #24 from Guido Nickels https://bugs.launchpad.net/ubuntu/+source/grub2/+bug/699802
If you don't want to scroll, just cut & paste :
sudo cp /usr/share/grub/*.pf2 /boot/grub/ && sudo update-grub
Hope this helps
Solution 2:
In the file /etc/default/grub find and turn off (comment with "#") two lines:
GRUB_HIDDEN_TIMEOUT=0
GRUB_HIDDEN_TIMEOUT_QUIET=true
After this run update-grub. This method together with the previous advice of jflaflamme was helped me.