Dragonfly Secures $650M Fund IV as Bear Market Pressure Deepens

Dragonfly Capital announced that it had closed its fourth venture fund, called Dragonfly Fund IV, at $650 million. The fund was announced at a time when the crypto market was experiencing low sentiment, fear, and bear market pressure. 

Haseeb Qureshi, the managing partner at Dragonfly Capital, said that it was a difficult time for investors. The new fund is similar in size to the $650 million Fund III that was raised in May 2022. The new fund was announced a year after the firm raised a $225 million second fund in 2021. 

Bloomberg reported in September 2024 that Dragonfly is raising a new $500 million fund and had already raised half of it.

Dragonfly Raised Earlier Funds in Tough Markets

Qureshi said that his company had been raising capital during difficult times in the crypto market. The first fund was raised in 2018 at a time when the post-ICO market was declining. 

The third fund was raised just before the Terra-Luna crash in 2022. However, he said that these were also Dragonfly’s best times.

Qureshi said that Dragonfly is making its biggest commitment to crypto with Fund IV. In a blog post, he said that Dragonfly believes that it is early days for crypto adoption. However, he said that they believe that the opportunity is clear and are going to be investing aggressively.

There have been a number of investments recently by the firm. These investments include Polymarket, Ethena, Rain, and Mesh. Qureshi said that the success of these companies is a result of the expansion in agentic payments, on-chain privacy, and tokenization of new asset categories.

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The company is also focusing more on institutional payment systems and stablecoin services. The venture capital firm participated in January in a $75 million Series C funding round for Mesh. 

Dragonfly Increases Exposure Through New Strategic Rounds

The funding round valued the company at $1 billion, with Paradigm, Coinbase Ventures, and PayPal Ventures also participating in the round.

Dragonfly co-led, along with Altos Ventures, a $36 million Series A funding round for Conduit in May 2025. The company specializes in cross-border payments infrastructure. 

Other investments made by the venture capital firm include an $11 million pre-Series A funding round for MyShell in March 2024, as well as a $4.25 million seed round for Fantasy.top in December 2024.

The closure of the fund comes after the resolution of a regulatory issue related to the venture capital firm’s earlier investments. 

On July 25, 2025, Qureshi said the U.S. Department of Justice told the court it is considering charges related to the August 2020 investment in PepperSec, Inc., the maker of the virtual currency tumblers Tornado Cash.

Five days later, the DOJ released a statement saying it is not investigating Dragonfly or its principals. The statements came during the trial of Tornado Cash co-founder Roman Storm, who was convicted in August 2025.

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