Key Takeaways
- • Dragonfly Capital closed its fourth fund, Dragonfly Fund IV, at $650 million, matching the size of its predecessor, despite a broad pullback in crypto venture investment, according to Fortune.
- • Managing partner Haseeb Qureshi described the market as one where "spirits are low, fear is extreme, and the gloom of a bear market has set in," while General Partner Rob Hadick called the environment a "mass extinction event" for crypto VC.
- • Fund III, raised in 2022, backed Polymarket, Rain and Ethena, investments that elevated Dragonfly into competition with Andreessen Horowitz and Paradigm.
- • Dragonfly has backed 162 companies over eight years and made 14 new investments in 2025, per Crypto Valley Journal.
- • Bitcoin traded near $66,700 at time of writing, roughly 47% below its October 2025 all-time high of $126,080.
Summary
Crypto-focused venture firm Dragonfly Capital has closed its fourth fund at $650 million, the company announced this week, according to Fortune. The raise defies 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.
Managing partner Haseeb Qureshi said "spirits are low, fear is extreme, and the gloom of a bear market has set in" in the current environment. General Partner Rob Hadick characterized conditions as a "mass extinction event" for crypto venture capital, but said the firm sees opportunity in deploying capital during downturns. 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.
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 bets helped elevate the firm into competition with larger crypto-native funds such as Andreessen Horowitz and Paradigm. According to Crypto Valley Journal, Dragonfly has backed 162 companies over eight years and made 14 new investments in 2025 alone. Its portfolio also includes Avalanche, Amber Group, MegaETH, Pendle, Kaito, and Bitget.
The leadership team 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 whose firm Ceyuan Ventures has reported ties to the country's political elite. The firm's first vehicle was backed by prominent Asian tech investors including Sequoia China's Neil Shen. Qureshi told Fortune: "It's bizarre to see us now become one of the incumbents. We're playing a bigger game than we were playing in the past."
Managing partner Haseeb Qureshi said "spirits are low, fear is extreme, and the gloom of a bear market has set in" in the current environment. General Partner Rob Hadick characterized conditions as a "mass extinction event" for crypto venture capital, but said the firm sees opportunity in deploying capital during downturns. 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.
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 bets helped elevate the firm into competition with larger crypto-native funds such as Andreessen Horowitz and Paradigm. According to Crypto Valley Journal, Dragonfly has backed 162 companies over eight years and made 14 new investments in 2025 alone. Its portfolio also includes Avalanche, Amber Group, MegaETH, Pendle, Kaito, and Bitget.
The leadership team 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 whose firm Ceyuan Ventures has reported ties to the country's political elite. The firm's first vehicle was backed by prominent Asian tech investors including Sequoia China's Neil Shen. Qureshi told Fortune: "It's bizarre to see us now become one of the incumbents. We're playing a bigger game than we were playing in the past."
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