Key Takeaways
- • Dragonfly Capital announced the final close of Dragonfly Ventures III, L.P. ("Fund III") with $650 million in LP capital commitments, exceeding its $500 million original target.
- • The fund was closed at its hard cap and drew institutional backing from Ivy League endowments, KKR, Tiger Global, Sequoia China, Invesco, US pensions, and sovereign wealth funds.
- • Fund III follows Dragonfly Ventures II, which closed in 2021 after raising over $250 million.
- • Dragonfly has invested over $700 million since its 2018 inception across seed, Series A, Series B, and liquid crypto deals.
- • The firm plans to deploy Fund III across all stages of blockchain and crypto investing, with a focus on infrastructure, DeFi, smart contract scaling, and consumer products such as NFTs, crypto games, and DAOs.
Summary
Dragonfly Capital, a global crypto-focused investment firm, announced the final closing of its third venture fund, Dragonfly Ventures III, L.P., with $650 million in capital commitments from limited partners, according to a PR Newswire release. The commitments exceed the fund's original target of $500 million, and the fund was closed at its hard cap. The release identifies a broad institutional LP base, including leading Ivy League endowments, KKR, Tiger Global, Sequoia China, Invesco, US pensions, and sovereign wealth funds.
Dragonfly previously closed Dragonfly Ventures II in 2021 after raising more than $250 million. According to the firm, Fund III expands its capacity to invest across all stages of blockchain and cryptocurrency companies, native protocols, and tokens. Managing Partner Haseeb Qureshi said the firm's differentiators are its global approach, which reflects the borderless nature of crypto, and a technically oriented team that largely understands crypto technology from first principles. He said Fund III will focus on crypto infrastructure, DeFi, smart contract scaling, and consumer products including NFTs, crypto games, and DAOs.
General Partner Tom Schmidt said the firm works closely with founders at the earliest stages and that most of its investment team previously worked at crypto startups. Since its 2018 inception, Dragonfly has invested over $700 million across seed, Series A, Series B, and liquid crypto deals. Portfolio companies named in the release include Avalanche, NEAR Protocol, Compound, MakerDAO, 1inch, Matter Labs, Amber Group, Anchorage, Bybit, and Dune Analytics. The firm states it has a global team of more than 40 professionals and invests from seed through Series D and into liquid tokens.
The release notes that funds are available only to accredited investors and that crypto assets are highly speculative and largely unregulated.
Dragonfly previously closed Dragonfly Ventures II in 2021 after raising more than $250 million. According to the firm, Fund III expands its capacity to invest across all stages of blockchain and cryptocurrency companies, native protocols, and tokens. Managing Partner Haseeb Qureshi said the firm's differentiators are its global approach, which reflects the borderless nature of crypto, and a technically oriented team that largely understands crypto technology from first principles. He said Fund III will focus on crypto infrastructure, DeFi, smart contract scaling, and consumer products including NFTs, crypto games, and DAOs.
General Partner Tom Schmidt said the firm works closely with founders at the earliest stages and that most of its investment team previously worked at crypto startups. Since its 2018 inception, Dragonfly has invested over $700 million across seed, Series A, Series B, and liquid crypto deals. Portfolio companies named in the release include Avalanche, NEAR Protocol, Compound, MakerDAO, 1inch, Matter Labs, Amber Group, Anchorage, Bybit, and Dune Analytics. The firm states it has a global team of more than 40 professionals and invests from seed through Series D and into liquid tokens.
The release notes that funds are available only to accredited investors and that crypto assets are highly speculative and largely unregulated.
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