Dragonfly raises $650M Fund IV during market downturn

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Yaroslav Dmytrenko

17.02.2026

Dragonfly raises $650M Fund IV during market downturn — Dragonfly bets big on crypto with $650M fund

Dragonfly Capital has closed its fourth venture fund, Dragonfly Fund IV, at $650 million. According to Managing Partner Haseeb Qureshi, the fund was raised during a period when “sentiment is depressed, fear is extremely high, and the doldrums of a bear market have set in.”

The new fund follows Dragonfly Fund III, also a $650 million vehicle raised in May 2022, and the firm’s second fund of $225 million raised in 2021.According to The Block, in September 2024 Dragonfly had planned to raise $500 million for Fund IV and had secured $250 million at the time, targeting a first-quarter 2025 close.

Haseeb Qureshi noted that previous funds were also raised during downturns, including Fund I during the 2018 ICO contraction and Fund III shortly before the Terra-Luna collapse in 2022, adding that those periods “turned out to be our best vintage years.”He described Fund IV as “the firm’s biggest bet that the crypto revolution is still in its early innings,” writing: “We believe the moment is now. In fact, we are putting our money behind it.”

“If you look at our recent bets — Polymarket, Ethena, Rain, Mesh — the growth speaks for itself. Agentic payments, blockchain privacy, tokenization of everything — crypto is about to explode, and we want to back founders at the center of it,” Qureshi wrote Tuesday in a post on X.

Investing during downturns delivers strongest returns

Dragonfly’s recent capital deployment has focused on institutional payment systems and stablecoin issuance. In January, the firm participated in a $75 million Series C funding round for crypto payments network Mesh, valuing the company at $1 billion, alongside Paradigm, Coinbase Ventures, and PayPal Ventures.

In May 2025, Dragonfly co-led a $36 million Series A round for cross-border payments startup Conduit together with Altos Ventures. Other firm-led investments include an $11 million pre-Series A round for Web3 AI platform MyShell in March 2024 and a $4.25 million seed round for Fantasy.top in December 2024.

In 2020, Dragonfly also invested in PepperSec, Inc., the developer of crypto mixer Tornado Cash, and last year was mentioned in an investigation involving Tornado Cash developer Roman Storm. However, the U.S. Department of Justice later confirmed that Dragonfly was not a target of the investigation.

As we wrote, Crypto payments firm Mesh becomes unicorn after $75M round

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