Dragonfly Capital Raises $650M as Billions Flow Into Web3 Funds

Having mostly contributed to early-stage companies, Dragonfly’s newest fund will allow for more investments in maturing firms.

By Sander Lutz

2 min read

Dragonfly Capital, a crypto-focused investment firm, announced this morning it has raised $650 million for its third venture fund.

The Dragonfly Fund III handily eclipses the firm’s previous funds, which raised $100 million in 2018 and $225 million in 2021. Its limited partners include Tiger Global, KKR, Sequoia China, and the endowments of multiple Ivy League universities, among others.

Dragonfly invests in crypto companies across the spectrum of decentralized finance, smart contracts, NFTs, Web3 development, DAO infrastructure, and the metaverse.

Since the firm’s inception in 2018, it has invested in almost 60 companies, including Ethereum rivals NEAR Protocol and Avalanche, data firm Dune Analytics, and metaverse land investor Everyrealm.

Historically, Dragonfly has participated primarily in early-round funding for crypto startups. The size of the firm’s third fund will allow it, according to a blog post by Dragonfly’s managing partner Haseeb Qureshi, to lead Series B or later rounds for companies, staying with them longer into their maturity.

With this newest fund we’ll be backing the most disruptive founders, protocol builders, and hackers of this generation,” Qureshi wrote.

Dragonfly’s round comes at a time when crypto-centric venture capital investment is at an all-time high. Last month, Kathryn Haun, formerly of Andreessen Horowitz, announced a $1.5 billion fund for Web3 ventures; in January, FTX announced a $2 billion Web3 fund; Paradigm’s fund, launched in November, raised a record $2.5 billion.

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