Dragonfly Capital has closed a $650 million fourth fund, positioning itself to invest in tokenised real-world assets and blockchain-based financial infrastructure as crypto venture capital priorities shift.
The new vehicle marks Dragonfly’s latest raise following prior funds of about $100 million in 2018, $225 million in 2021 and $650 million in 2022, with the firm signalling a move away from consumer apps towards credit card-style services, money market-like funds and tokens tied to assets such as stocks and private credit.
“This is the biggest meta shift I can feel in my entire time in the industry,”
Said Tom Schmidt, general partner at Dragonfly.
The fundraising follows what general partner Rob Hadick described as a “mass extinction event” in the crypto VC ecosystem, as higher interest rates and falling token prices reduced the pool of active investors.
Despite a cooling in traditional early-stage venture deals during 2025, capital has continued to flow through IPOs, private investments in public equity, debt raises and post-listing equity offerings, reflecting a maturing sector increasingly tapping public markets.
Last month, 111 crypto companies raised a combined $2.5 billion across IPOs, PIPEs, debt and equity offerings, according to data from The TIE, signalling renewed institutional engagement even as funding channels evolve.
The sector focus has also shifted from layer-1 blockchains and consumer-facing applications towards stablecoin infrastructure, institutional custody, digital asset treasury strategies and trading platforms designed to bridge blockchain technology with traditional finance.