Crypto-focused venture capital firm Dragonfly Capital has successfully closed its fourth funding round this week, despite the ongoing slump in the crypto market. Without disclosing the names of investors, Dragonfly’s managing partner Haseeb Qureshi said the firm has roped-in a whopping $650 million in this round.
Qureshi called for a celebration as he shared the development on X, acknowledging that this does make for a milestone moment especially now that the crypto market is undergoing a rough downturn.
“We raised almost every single Dragonfly fund into bear markets,” Qureshi said. “Fund IV is our biggest bet yet that the crypto revolution is still early in its exponential. Fund I we raised through the 2018 ICO winter, when almost nobody believed in this space anymore. Fund III we raised right before Luna collapsed.”
The valuation of the crypto market, as of Wednesday, stands at $2.34 trillion. Same day last year, the market cap of the sector was at $3.18 trillion. This drastic fall can be attributed to the geo-political tensions between the U.S. and regions like the EU and Iran. Additionally, stalled interest rate revisions and setbacks in crypto regulations in the U.S. are crucial reasons for keeping the market down.
According to Qureshi while non-financial crypto like decentralized identity, decentralized physical infrastructure has failed, financial crypto is exploding despite the geo-political stress and macro-economical changes.
“We’ve always believed that the most important work gets done when the noise dies down. Stablecoins are eating the world. DeFi has grown so big it’s rivaling CeFi. Financial institutions around the world are racing to build out their crypto strategies. And prediction markets are becoming the most trusted source of truth on the internet,” he noted.
For now, Dragonfly Capital has not disclosed how it intends to utilize the capital. In the past however, the venture firm has invested in projects like Polymarket, Ethena, Rain, and Mesh among others.