Crypto enterprise agency Dragonfly Capital accomplished a $650 million fourth fund, marking one of many largest raises within the sector at a time when many blockchain-focused VCs are struggling, Managing Companion Haseeb Qureshi stated.
“It’s a bizarre time to rejoice,” Qureshi wrote on a social media submit on Tuesday, describing low spirits and “the gloom of a bear market” for crypto. Nonetheless, he famous that Dragonfly has traditionally raised capital throughout downturns, together with the 2018 ICO crash and simply earlier than the 2022 Terra collapse, ‘vintages,’ he stated, finally grew to become the agency’s greatest performers.
In September, the agency stated it was aiming to lift $500 million for its fourth fund, which might goal early-stage tasks. It has not but recognized any of them. In Might 2023, Dragonfly Capital raised $650 million for its third crypto fund for later-stage corporations.
‘Largest guess but’
The brand new automobile comes as token costs slumped this yr and fundraising throughout crypto ventures has slowed sharply. Bitcoin has misplaced roughly 46% of its worth since its all-time excessive of greater than $126,000 in October of final yr, and the crypto downtrend has worn out greater than $1.4 trillion in market cap.
Whereas market sentiment stays bearish, Qureshi is bullish on crypto’s monetary use circumstances, saying the sector “is exploding,” whereas different non-financial use circumstances are failing. The truth is, Dragonfly has more and more leaned into crypto-financial infrastructure, from stablecoins to tokenization and on-chain funds, reflecting a broader shift away from speculative Web3 functions and towards blockchain-based monetary providers.
“Stablecoins are consuming the world. DeFi has grown so huge it is rivaling CeFi. Monetary establishments all over the world are racing to construct out their crypto methods. And prediction markets have gotten probably the most trusted supply of reality on the web,” he wrote.
Qureshi additionally famous the expansion in Dragonfly’s latest investments, together with Polymarket, Ethena, Rain, and Mesh, as examples of his thesis that crypto’s monetary use circumstances are having a second.
His feedback come after VC companies at Consensus Hong Kong 2026 struck a cautious tone concerning the state of the crypto market amid prevailing bearish sentiment. The crypto VCs that included Qureshi, Most Frequency Ventures’ Mo Shaikh and Pantera Capital’s Paul Veradittakit all echoed the identical sentiment: spend money on what’s working, like stablecoins and tokenizations, whereas selectively betting on sectors equivalent to AI and prediction markets.
Qureshi appears to be doubling down on the concept the crypto business is not lifeless, regardless of the gloom, however simply realigning and famous that the brand new fund is his agency’s “largest guess but that the crypto revolution continues to be early in its exponential.”
Fortune was first to report Dragonfly’s latest elevate.
