Dragonfly Capital ’s new crypto fund will target early-stage projects in the crypto space. More than 100 digital asset startups are part of the firm’s portfolio.
San Francisco-based venture capital firm Dragonfly Capital plans to raise $500 million for its fourth cryptocurrency fund, according to a September 17 Bloomberg report citing an unnamed source.
The new fund is said to be about halfway through its funding round, with $250 million raised to date. The company expects to complete the fundraising in the first quarter of 2025, according to the source.
The fund will focus on early-stage investments in cryptocurrency and blockchain-based projects. Dragonfly has invested in more than 100 digital asset companies and projects, including Ethena, Andrena, Cosmos , and Monad Labs. The firm will close its third fund worth $650 million in 2022.
In a recent interview, Dragonfly partner Anirudh Pai discussed the company’s portfolio, highlighting that Ethereum’s layer 2 scaling and liquidation Shard are among the industry’s biggest opportunities.
“Caldera, one of our portfolio companies, has done a great job here as they address the liquidation Shard that currently exists on Ethereum,” Pai said. “Their upcoming metalayer will connect the world of different aggregates that exist on Ethereum today.”
Another Ethereum-based project in Dragonfly’s portfolio is MegaETH. The company participated in the startup’s $20 million seed funding round alongside Ethereum creator Vitalik Buterin and ConsenSys founder Joseph Lubin. The MegaETH smart contract platform promises to process 100,000 transactions per second — 100 times faster than Ethereum’s native smart contract platform.
The upcoming fund comes amid a resurgence in venture capital activity in the cryptocurrency space, spurred by the January approval of Bitcoin exchange-traded funds (ETFs) in the United States. For example, venture firm Pantera Capital is seeking to raise $1 billion for its new “all-in-one” fund, Pantera Fund V. The fund will focus on a variety of blockchain-based assets, marking one of the largest fundraising efforts in the space.
Another notable VC that has raised money for crypto projects is Paradigm . The company recently raised $850 million for its third fund, which will focus primarily on investing in early-stage blockchain projects.
The new fund represents Paradigm ’s largest Capital raise since its $2.5 billion fund in 2021. Its portfolio includes previous investments in Coinbase, Uniswap , and Optimism.
Venture capital Capital for crypto startups increased by 2.5% in Q2 2024.
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