TLDR:
- Dragonfly, a San Francisco-based VC firm, is raising $500 million for its fourth fund, with $250 million already raised.
- The new fund will focus on early-stage crypto projects and has recently invested in projects like Agora, MyShell, and MegaETH.
The report by Bloomberg reveals that Dragonfly, a venture capital firm based in San Francisco, is in the process of raising $500 million for its fourth fund. The fund has already secured $250 million and is expected to close by the end of the first quarter next year. This new fund will target early-stage crypto projects and has recently made investments in various projects, including the stablecoin project Agora, the Web3 AI platform MyShell, and the real-time EVM-compatible blockchain MegaETH developed by MegaLabs.
Dragonfly’s previous fund, the third fund, closed at $650 million in 2022 and attracted investments from notable entities such as Tiger Global, KKR, Sequoia China, Ivy League endowments, and Invesco. The current fundraising efforts by Dragonfly come at a time when multiple Web3-focused venture capital firms are returning to the market after a period of crypto winter. In the first quarter of 2024, Web3 startups raised $1.9 billion, signifying a significant increase from the previous quarter and indicating a rebound in the sector. In addition to Dragonfly, other firms like Hack VC, Paradigm, and Robot Ventures are also actively seeking early-stage crypto opportunities.
The resurgence in funding for Web3 startups highlights the growing interest and confidence in the sector, with investors showing a renewed willingness to support innovative and promising projects. Dragonfly’s latest fundraising efforts and investments further underscore the potential and opportunities that exist within the crypto and blockchain space, positioning the firm as a key player in fueling growth and innovation within the industry.
