Quick take:
The San Francisco-based venture capital firm plans to close the fund by the end of the first quarter next year.
The firm has recently invested in the likes of MegaLabs, Agora, MyShell and Morph, among others.
Dragonfly previously raised $650 million for its third fund in 2022.
The crypto-focused venture firm Dragonfly is reportedly raising $500 million in funding for its fourth fund, according to a Bloomberg report. People familiar with the matter who did not want to be named told the media publisher that the new fund has already garnered $250 million, and will invest in early-stage crypto projects.
The San Francisco-based VC has recently invested in the stablecoin project Agora, co-founded by Nick Van Eck, the son of investment management veteran Jan Van Eck.
In March, Dragonfly also led an $11 million pre-Series A round for Web3 AI platform MyShell and a $20 million seed round for consumer-focused blockchain Morph.
In June, it invested in MegaETH, a real-time EVM-compatible blockchain being developed by MegaLabs.
The report emerges at a time when multiple Web3-focused venture capital firms are returning to the market following two years of crypto winter.
According to CrunchBaseâs Web3 tracker, Web3 startups raised $1.9 billion in Q1 2024, a significant increase from the $1.2 billion raised in Q4 2023, ending eight consecutive quarters of declining funding.
In Q2, the figure increased further to $2.2 billion, establishing a trajectory that is indicative of a rebound in the sector.
In February, Hack VC closed a $150 million new fund to invest in early-stage Web3 and AI projects, while Paradigm raised $850 million for its third fund which also targets early-stage crypto projects.
Last month, New York-based Robot Ventures closed its fourth fund with $75 million in funding and is also eyeing early-stage crypto opportunities.
In 2022, Dragonfly closed its Third Fund at $650 million, attracting backing from the likes of Tiger Global, KKR, Sequoia China, Ivy League endowments, and Invesco.
Stay on top of things:
Subscribe to our newsletter using this link â we wonât spam!
Follow us on X and Telegram.
The post Crypto VC Firm Dragonfly Raising $500 Million for Its Fourth Fund appeared first on NFTgators .