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Crypto VC Fund Dragonfly Seeks to Raise a $500 Million Fund

Buildings in the downtown skyline of San Francisco, California, US, on Wednesday, May 3, 2023. San Francisco's office-vacancy rate soared to a record 27.6% at the end of 2022, compared with just 3.7% before the pandemic. Photographer: Jason Henry/Bloomberg (Jason Henry/Bloomberg)

(Bloomberg) -- Crypto venture capital firm Dragonfly Capital is seeking to raise $500 million for its fourth fund, which will invest in early-stage projects, according to a person with knowledge of the matter.

The San Francisco-based firm has garnered $250 million so far and aims to close the fundraising by next year’s first quarter, the person said, asking not to be named as the details aren’t public yet. 

Dragonfly joins a list of crypto VC funds tapping investors as the industry recovers from the crisis that shook it two years ago, with Robot Ventures and Paradigm among firms raising money in the past few months. Dragonfly’s fundraising comes in the midst of a closely contested US presidential election in which Donald Trump has pledged to support the sector should he return to the White House. 

Dragonfly has invested in more than 100 digital-asset companies and projects including Ethena, Cosmos and Monad Labs, according to its website. It closed its third fund, a $650 million vehicle, in 2022.

Rob Hadick, general partner at Dragonfly, declined to comment in a Bloomberg Television interview on Wednesday when asked about the possibility of a fourth fund. 

Speaking generally, Hadick said on the sidelines of a conference in Singapore that “we’ve seen this uptick in venture capital funding this year that I think is going to serve us really well going into next year.”

--With assistance from Adrian Wong and Annabelle Droulers.

(Updates with comment from a general partner from the fifth paragraph.)

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