Catenaa, Tuesday, February 24, 2026- Dragonfly Capital has closed its fourth crypto venture fund, Dragonfly Fund IV, at $650 million, targeting investments despite current market weakness. Managing Partner Haseeb Qureshi described the funding as arriving “as spirits are low, fear is extreme, and the gloom of a bear market has set in.”
Fund IV matches the size of Dragonfly’s Fund III, which closed in May 2022, and follows the $225 million second fund raised in 2021. Qureshi said previous funds raised during downturns, including Fund I amid the 2018 ICO contraction, produced some of the firm’s strongest vintages, framing the latest close as the company’s “biggest bet yet that the crypto revolution is still early.”
Recent allocations have focused on institutional payments and stablecoin issuance. In January, Dragonfly led a $75 million Series C for crypto payments network Mesh, valuing the company at $1 billion with participation from Paradigm, Coinbase Ventures, and PayPal Ventures. The firm also co-led a $36 million Series A for cross-border payments startup Conduit in May 2025 and made smaller investments in web3 AI platform MyShell and Fantasy.top.
Fund IV’s close follows the resolution of a potential regulatory inquiry.
In 2025, the U.S. Department of Justice considered charges related to Dragonfly’s 2020 investment in Tornado Cash developer PepperSec, Inc., but later clarified that neither Dragonfly nor its principals were targets. The resolution removes uncertainty, allowing the firm to continue investing in early-stage crypto ventures.
