A source familiar with the situation has disclosed that Dragonfly Capital, a crypto venture capital firm, is aiming to raise $500 million for its fourth fund, with a primary focus on investing in early-stage projects. The firm, headquartered in San Francisco, has already secured $250 million internally and aims to complete the fundraising by the first quarter of the following year. Details of the endeavor are confidential, and Dragonfly has refrained from commenting on it.
In pursuit of investment opportunities, Dragonfly Capital is following the footsteps of other crypto VC funds like Robot Ventures and Paradigm, seizing opportunities as the industry rebounds from past challenges. Amidst a divisive U.S. presidential election, where one candidate, Donald Trump, has pledged support for the sector if re-elected, Dragonfly continues with its fundraising efforts.
Having invested in over 100 digital asset companies and projects such as Ethena, Cosmos, and Monad Labs, Dragonfly Capital closed its third fund amounting to $650 million two years ago. As the firm continues to make strategic investments, a recent market crash prompted insights from prominent figures in the crypto space, including Haseeb Qureshi and Tom Schmidt, both Managing Partners at Dragonfly, as well as other industry experts.
Despite Solana’s growing network activity, it still lags behind Ethereum in terms of venture capital investments, with most successes remaining contained within its ecosystem or meme coins. Notwithstanding, there are opportunities for strategic investors in Solana, especially those positioned early on in the network’s development. Comparisons between Solana and Ethereum highlight Solana’s proactive approach to enhancing network reliability, presenting intriguing prospects for investors in the evolving crypto landscape.