Venture capital firm Dragonfly has closed $650mn for its fourth fund, moving away from its previous thesis and signaling a tighter emphasis on crypto's financial era.
Dragonfly’s $650M Fund Signals Narrower Bet on Financial Crypto
17 February 2026 - 22:40 CET
By Ana Pereira
The raise comes during a recovery period for crypto venture capital in 2025, despite the crash from October that triggered the current winter. According to data from PitchBook, global crypto venture funding totaled $19.7bn in 2025, still below the more than $30bn deployed at the market’s 2021 peak.
Dragonfly's Fund IV is being framed far more tightly around finance. “Non-financial crypto has failed,” partner Haseeb Qureshi wrote on X while announcing the new $650mn fund. He argued that “financial crypto is exploding,” citing stablecoins, decentralized finance and prediction markets.
A tighter focus on finance
In its earlier funds, Dragonfly positioned itself as a broad, crypto-native investor spanning infrastructure, native protocols and consumer-facing Web3 products.
When it closed its oversubscribed $650mn third fund in 2022, during another bear market, the firm said it would “invest across all stages of blockchain and cryptocurrency companies, native protocols and tokens that seek to create new economies.”
At that time, Qureshi noted that Dragonfly would “double down on backing the next breakthroughs in crypto infrastructure, DeFi, smart contract scaling, and breakthrough consumer products like NFTs, crypto games, and DAOs.”
Nearly four years later, amid another bear market, Dragonfly is looking at the potential of TradFi’s growing interest in crypto and blockchain rails. "Financial institutions around the world are racing to build out their crypto strategies," Qureshi said.
Dragonfly's portfolio
Dragonfly is a backer of several crypto companies, including major players such as Avalanche, NEAR Protocol, Compound, MakerDAO, 1inch, Matter Labs, Amber Group, Anchorage Digital, Bybit, Matrixport, Dune Analytics and even Tornado Cash.
Most recently, it has invested in Ethena, the issuer of the yield-bearing synthetic dollar USDe and prediction markets platform Polymarket, alongside payments and wallet infrastructure such as Rain and Mesh.
Compared with Fund III’s explicit push into NFTs, crypto games and DAOs, the new fund’s messaging suggests a narrower thesis from one of the largest crypto VCs, with greater emphasis on financial use cases than on blockchain experimentation.
“Day in and day out, we challenge our priors and each other to ensure we are not driven by the market, but that we are focused on what we expect to be true on the horizon,” partner Robert Hadick wrote on X.
