Dragonfly Capital Fund IV closes $650M as LPs seek quality

Key Takeaways:

• Dragonfly closes $650M Fund IV amid downturn, exceeding initial target.
• Signals LP appetite for select managers despite weak crypto venture flows.
• Expect stricter diligence, governance; more term sheets for regulation-forward enterprises.

Dragonfly has closed a $650 million fourth crypto venture fund during a broad market downturn, topping its initial target, as reported by The Block Pro. The close signals continued limited-partner appetite for select managers despite weaker crypto venture flows.

Large closes are rare in the current cycle: based on figures compiled by Coinglass, industry fundraising fell from about $86 billion in 2022 to roughly $11.2 billion in 2023 and $7.95 billion in 2024, with about $3.7 billion raised so far in 2025. That context underscores the size of Fund IV relative to peers.

For founders, the immediate impact is more active term sheets for regulation-forward, enterprise-ready projects, but with stricter diligence and governance. For LPs, the close reflects a flight to quality toward managers with differentiated theses and sourcing.

Track record also matters: Fortune has highlighted Dragonfly’s rise and an early bet on Polymarket, which helps explain LP confidence in a constrained market. In this environment, mid-tier vehicles may struggle to clear minimum fund sizes.

According to CryptoBriefing, Fund IV will concentrate on blockchain infrastructure, decentralized finance, stablecoins, and adjacent onchain finance categories, including real-world assets. The thesis emphasizes core financial plumbing rather than consumer-first applications.

Real-world assets typically involve tokenizing claims on off-chain instruments such as private credit or cash equivalents, which heightens requirements around disclosure, custody, and transfer restrictions. Execution will likely hinge on partnerships with regulated trustees and compliance tooling.

Stablecoin and payments rail investments point to settlement utility and cross-border efficiency, areas where licensing regimes and reserve attestations are material risk factors. Infrastructure bets may include data availability, security, and developer tooling that reduce integration friction for enterprises.

Dragonfly’s leadership frames the strategy as a disciplined response to the cycle, arguing that quieter markets can produce stronger vintages and more durable projects. “This moment may also yield excellent opportunities,” said Haseeb Qureshi, Managing Partner at Dragonfly.

At the time of this writing, Coinbase Global (COIN) traded around $169.54, up about 3.18% on the day, according to Yahoo Finance; this offers general context on listed crypto-exposed equities but is not indicative of fund performance.

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