• Dragonfly Capital Raises $650 Million for Third Crypto Fund

  • Dragonfly Capital, a crypto asset investment firm, has raised $650 million for the opening of its third fund.

    Yet another cryptocurrency investment fund

    Investors are pouring money into Dragonfly Capital’s latest cryptocurrency fund.

    The crypto investment firm announced on Wednesday that it has completed fundraising for its third venture fund, dubbed the Dragonfly Ventures III Fund, after raising $650 million. According to regulatory papers from January, Dragonfly Capital sought to raise $500 million; however, due to the fund being oversubscribed, the final total was $150 million higher than the target. The amount raised more than triple Dragonfly’s first $100 million cryptocurrency fund and second $225 million raise, bringing the firm’s total assets under management to almost $3 billion.

    Contributors to the new fund include crypto investing veterans Tiger Global, KKR, and Sequoia China, as well as numerous unnamed Ivy League universities and an unknown Southeast Asian state-owned investment firm.

    According to Dragonfly Capital managing partner Haseeb Qureshi, the new fund would allow the firm to continue investing in potential initiatives. Tom Schmidt, another partner, elaborated on the fund’s goal, saying:

    “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 large fund that has recently launched. Sequoia Capital, based in Silicon Valley, unveiled its own crypto-dedicated fund in February, with the purpose of actively managing its assets to produce yield and participate in DAO governance voting. Andreessen Horowitz, another venture capital behemoth, has announced ambitions to raise $4.5 billion to invest in cryptocurrency firms.

    Despite the crypto market’s more modest performance in 2022, money in the space is still pouring in. According to market data portal Pitchbook, crypto businesses raised more than $13 billion in the first quarter of the year and are on track to exceed the $30 billion raised in 2021.

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