Dragonfly Capital, a crypto venture capital firm, aims to raise $500 million for its fourth fund, mainly targeting early-stage projects. The firm has already internally raised $250 million and plans to complete the fundraising by Q1 2025. This move follows a recovering crypto market and US election uncertainties. Dragonfly Capital has invested in over 100 digital asset companies and projects, including Ethena, Cosmos, and Monad Labs.
Additionally, crypto experts have analyzed Solana's surge and its potential impact on Ethereum, highlighting opportunities for strategic investors in Solana.
According to a person familiar with the matter, crypto venture capital firm Dragonfly Capital is targeting to raise $500 million for its fourth fund, which will be mainly invested in projects at an early stage. Based in San Francisco, Dragonfly Capital has already raised internally $250 million and plans to finish the fundraising in the first quarter of next year. The details are private, and Dragonfly hasn’t made any comment on the matter.
The firm’s move also follows other crypto VC funds, including Robot Ventures and Paradigm, in chasing investment after the industry emerged from trials it faced two years ago. Dragonfly’s fundraising comes against a contentious U.S. presidential election in which one of the candidates, Donald Trump, has declared he intends to support the sector if re-elected. If all goes well, however, Dragonfly Capital has invested in more than 100 digital asset companies and projects, including Ethena, Cosmos, and Monad Labs, according to its website. Two years ago, the firm closed its third fund, which raised $650 million.
Recently, some crypto experts chimed in with their thoughts on the ongoing crash of the market. These include: Haseeb Qureshi, Managing Partner at Dragonfly; Tom Schmidt, General Partner at Dragonfly Capital; Robert Leshner, CEO & Co-founder of Superstate; and Tarun Chitra, Managing Partner at Robot Ventures. While Solana’s first month saw stellar DEX volumes above Ethereum, it still has a long way to go in terms of venture capital investment.
Comparing the two, Solana still boasts highly active network activity, while its capital inflows are softer compared with Ethereum. This creates a very interesting opportunity for strategic investors. Early-stage funds positioned in Solana, such as Frictionless or Big Brain, may be set up well for upside if Solana’s traction keeps improving. Also, the path to improved network reliability for Solana has been much more pragmatic compared with Ethereum’s longer-term theoretical fixes.