Dragonfly Capital Secures $650M for Third Crypto Fund

Crypto asset investment firm Dragonfly Capital has raised $650 million for the launch of its third fund. 

Another Crypto Investment Fund

Investors are piling into Dragonfly Capital’s latest crypto fund. 

The crypto investment firm announced Wednesday that it had closed fundraising for its third venture fund, titled the Dragonfly Ventures III Fund, after securing a total of $650 million. Regulatory filings from January revealed Dragonfly Capital initially intended to raise $500 million; however, due to the fund being oversubscribed, the final figure came in $150 million over the target. The amount raised more than doubles the firm’s inaugural $100 million cryptocurrency fund and subsequent $225 million raise combined, and propels Dragonfly’s total assets under management to approximately $3 billion. 

Contributors to the new fund include crypto investment veterans such as Tiger Global, KKR, and Sequoia China, along with several unnamed Ivy League universities and an undisclosed Southeast Asian state-owned investment company. 

Dragonfly Capital managing partner Haseeb Qureshi commented that the new fund would help the firm continue investing in promising projects. Fellow partner Tom Schmidt further explained the fund’s objective, stating:

“We haven’t always had the funds to lead further rounds and double down on teams we believe in. With Fund III, we can back teams throughout their lifecycle and new founders as their companies mature.”

The Dragonfly Ventures III Fund is not the only major fund to launch in recent months. In February, Silicon Valley’s Sequoia Capital announced its own crypto-dedicated fund with the goal of actively managing its assets to generate yield and participate in DAO governance votes. Fellow venture capital giant Andreessen Horowitz has also revealed plans to raise a mammoth $4.5 billion to invest in crypto companies. 

Despite the crypto market’s relatively subdued performance in 2022, investment in the space continues to flood into the space. According to market data platform Pitchbook, crypto companies have raised over $13 billion in the first quarter of the year and are set to surpass the $30 billion raised in 2021.

Disclosure: At the time of writing this piece, the author owned ETH and several other cryptocurrencies.