Dragonfly VC raising $500m in fourth funding round

According to Bloomberg, leading crypto venture capital firm Dragonfly Capital is raising $500 million for its fourth investment fund.

The fund will continue Dragonfly’s strategy of supporting innovative companies, focusing on early-stage projects in the blockchain space. The company has already raised $250 million and plans to close the fundraise in the first quarter of 2025, an anonymous source told Bloomberg.

While Dragonfly has not publicly confirmed these details, the firm has been a major player in the digital asset market with a history of investing in over 100 companies, including notable projects such as Ethena (USDE), Cosmos (ATOM), and Monad Labs.

Dragonfly’s crypto initiatives

Dragonfly’s recent activities include supporting Agora, a stablecoin project that is expanding its offerings to the Sui blockchain. The integration of Agora’s stablecoin, AUSD, into Sui is part of a larger strategy to attract enterprise users and developers by offering stablecoins that can be used on a variety of blockchain networks.

In May, Dragonfly Capital’s Haseeb Qureshi dismissed claims that venture capitalists were trashing cryptocurrencies and expressed skepticism about prevailing theories explaining the recent price declines of tokens listed on Binance, particularly those with high fully diluted valuations and low circulating supply. In a post on X on May 19, Qureshi addressed these concerns, suggesting that market sentiment had turned against these “risky new coins” amid broader market declines and geopolitical tensions in April.

Dragonfly Capital has been actively raising funds for its venture capital efforts in the crypto space for many years and has seen notable success in the past. According to Bloomberg, the firm closed its third fund in 2022, raising $650 million to invest in early-stage projects.