Crypto venture firm Dragonfly Capital has raised $650 million for its fourth fund, even as the cryptocurrency market grapples with declining prices and waning investor interest. The new fund targets early-stage investments in a sector facing reduced deal activity. Co-founder Haseeb Qureshi highlighted the firm's candid approach as a key strength.
Dragonfly Capital, a prominent crypto venture capital firm, announced the closure of its fourth fund totaling $650 million. This comes at a time when the broader cryptocurrency market is experiencing a severe downturn, marked by falling token prices and diminished investor enthusiasm.
The firm's previous fund, its third, successfully deployed $500 million into various startups, including Polymarket, Rain, and Ethena. The latest $650 million vehicle is intended to support continued early-stage investments. According to reports, the crypto venture sector is currently slowing, with declining deal activity and difficulties in securing additional capital from investors.
Haseeb Qureshi, co-founder of Dragonfly, commented on the firm's strategy: “We talk out loud and we say what we think. In a space that is just completely flooded with bulls**t and with fakers and self-promoters, I think that has actually been a superpower.”
Dragonfly's portfolio includes investments in Layer 1 blockchain projects such as Avalanche, financial services companies like Amber Group, and other cryptocurrency initiatives. The firm has navigated multiple market challenges, including the collapse of the Terra Luna ecosystem, the bankruptcy of FTX, and relocation from China following a local crackdown on crypto activities.
Additionally, Dragonfly faced regulatory attention from the U.S. Department of Justice. In July 2025, during the trial of Tornado Cash developer Roman Storm—who was convicted of operating an unlicensed money transmission business—prosecutor Nathan Rehn informed District Judge Katherine Polk Failla that charges were under consideration against Dragonfly employees, including general partner Tom Schmidt, related to a 2020 investment in Tornado Cash. The firm has cooperated with the investigation since 2023, and Qureshi stated that they would defend themselves if charges were filed. Ultimately, the Justice Department did not pursue charges against Schmidt.
