Dragonfly Capital Announces $650M Raise for Third Crypto Fund

According to a recent update from Haseeb Qureshi, the firm’s managing partner, crypto-centered investment firm Dragonfly Capital, just launched a new fund with $650 million worth of capital.

Dragonfly had previously disbursed two funds, with the most recent being the third and largest. At first, the investment firm had earlier made plans to close the fundraising with a $500 million fund as stated in a filing with the U.S. Securities and Exchange Commission (SEC) at the beginning of the year, however, the third fund ended with a $650 million raise.

The latest venture fund saw participation from global investment companies like Tiger Global Management, KKR, Top Tier Capital Partners, Ivy League endowments, Invesco, VC firm Sequoia Capital China, and an unnamed Southeast Asian state-owned investment company.

Dragonfly Capital Crypto Funds

In the two previous funding rounds, the investment firm raised about $100 million in 2018 and $225 million in 2021. Through the funding, the company has supported crypto projects like Avalanche, Matter Labs, Dune Analytics, MakerDAO,  Anchorage, etc. Coupled with the third fund venture, the total assets under the management of Dragonfly Capital increased to approximately $3 billion.

Concerning the changes the recent fund venture will bring to the investment company, Qureshi said, “There’s so, so much to build, and with our Fund III, we’re better equipped to back founders all along their journey, from seed to Series B and beyond.”

Crypto Startups Well Funded Despite Bear Market Fears

Dragonfly Capital’s recent raise comes at a time when several funds are raising significant amounts to invest in the crypto and blockchain industry.

For instance, Coinfomania had reported a $1.5 billion raise by former Citigroup Matt Zhang and an ongoing $4.5 billion raise by Andressen Horowitz. In March, Bain Capital also announced a $560 million fund dedicated to the crypto space.

These funds could presumably allay fears of a long-term bear market for the crypto space, and demonstrate a growing investor appetite to allocate to the emerging industry.