Dragonfly Capital Closes $650 Million Fourth Fund Amid Crypto VC Downturn

Crypto-focused venture firm Dragonfly Capital has closed its fourth fund at $650 million, the company announced this week, Fortune reported, defying a broader pullback in blockchain investment as token prices slump and investor attention shifts toward artificial intelligence.

The new vehicle, Dragonfly Fund IV, matches the size of its predecessor and arrives at a moment when managing partner Haseeb Qureshi said "spirits are low, fear is extreme, and the gloom of a bear market has set in."

General Partner Rob Hadick characterized the current environment as a "mass extinction event" for crypto venture capital, but said the firm sees opportunity in deploying capital during downturns.

Dragonfly's Fund III, raised in 2022 amid the collapse of Terra Luna and FTX, produced several of the firm's most successful investments, including prediction market Polymarket, payments company Rain, and synthetic dollar protocol Ethena. Those early bets helped elevate Dragonfly into competition with larger crypto-native funds such as Andreessen Horowitz and Paradigm.

The firm has backed 162 companies over eight years and made 14 new investments in 2025 alone, according to Crypto Valley Journal. Its portfolio also includes Avalanche, Amber Group, MegaETH, Pendle, Kaito, and Bitget.

"It's bizarre to see us now become one of the incumbents," Qureshi told Fortune. "We're playing a bigger game than we were playing in the past."

Dragonfly's leadership includes Qureshi, a former professional poker player turned software engineer who joined in 2019; Hadick, previously at hedge fund GoldenTree; Tom Schmidt, former head of product at decentralized exchange 0x; and founder Bo Feng, a veteran China tech investor with reported ties to the country's political elite through his firm Ceyuan Ventures.

The fund's first vehicle was backed by prominent Asian tech investors including Sequoia China's Neil Shen.

Bitcoin was trading near $66,700 at time of writing, down roughly 47% from its all-time high of $126,080 recorded in October 2025.