Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Crypto investment firm Dragonfly secures $650 million amid challenging bear market conditions.
The company’s fourth fund places it in competition with a16z and Paradigm, even as fundraising for blockchain venture capital decreases and investors shift their focus to stablecoins and tokenized finance.
Key points:
- Dragonfly Capital has finalized a $650 million fourth fund, which is among the most significant recent capital raises in the crypto venture space, despite ongoing challenges in the industry.
- Managing partner Haseeb Qureshi stated that the firm is intensifying its focus on financial applications such as stablecoins, decentralized finance, and prediction markets, asserting that “non-financial crypto has failed.”
- This fundraising effort coincides with federal prosecutors considering potential criminal charges against certain Dragonfly staff concerning the firm’s investment in Tornado Cash in 2020, even as Dragonfly broadens its operations in the U.S. alongside prominent crypto investors.
Crypto venture firm Dragonfly Capital has successfully closed a $650 million fourth fund, representing one of the largest capital raises in the industry during a period when numerous blockchain-focused VCs are facing difficulties, according to Managing Partner Haseeb Qureshi.
“It’s an unusual moment to celebrate,” Qureshi remarked in a social media update on Tuesday, noting the low morale and “the gloom of a bear market” in crypto. However, he pointed out that Dragonfly has historically secured funding during downturns, including the 2018 ICO crash and just prior to the 2022 Terra collapse, which he described as ‘vintages’ that ultimately became the firm’s top performers.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newslettersSign me up
In September, the firm announced its goal to raise $500 million for its fourth fund, which would focus on early-stage projects. It has yet to identify any of these projects. In May 2023, Dragonfly Capital raised $650 million for its third crypto fund aimed at later-stage companies.
Related Posts
‘Biggest bet yet’
The new fund emerges as token prices have decreased this year and fundraising efforts across crypto ventures have sharply diminished. Bitcoin has seen a drop of approximately 46% since its peak of over $126,000 in October of the previous year, with the ongoing crypto downturn erasing over $1.4 trillion in market capitalization.
While market sentiment remains negative, Qureshi expresses optimism regarding crypto’s financial applications, stating that the sector “is exploding,” while other non-financial applications are faltering. Indeed, Dragonfly has increasingly focused on crypto-financial infrastructure, including stablecoins, tokenization, and on-chain payments, reflecting a broader transition from speculative Web3 applications toward blockchain-based financial services.
“Stablecoins are dominating the landscape. DeFi has expanded to the point where it is competing with CeFi. Financial institutions globally are racing to develop their crypto strategies. Furthermore, prediction markets are becoming the most reliable sources of truth on the internet,” he noted.
Qureshi also highlighted the expansion of Dragonfly’s recent investments, such as Polymarket, Ethena, Rain, and Mesh, as evidence supporting his assertion that crypto’s financial applications are currently thriving.
His remarks follow a cautious outlook expressed by VC firms at Consensus Hong Kong 2026 regarding the state of the crypto market amid the prevailing bearish atmosphere. The crypto VCs, including Qureshi, Maximum Frequency Ventures’ Mo Shaikh, and Pantera Capital’s Paul Veradittakit, all conveyed a similar message: invest in what is working, such as stablecoins and tokenizations, while selectively considering sectors like AI and prediction markets.
Qureshi appears to be reinforcing the belief that the crypto sector is not dead, despite the prevailing challenges, but is merely undergoing a realignment, and he mentioned that the new fund represents his firm’s “biggest bet yet that the crypto revolution is still in its early exponential stages.”
Fortune was the first to report on Dragonfly’s recent fundraising efforts.
