Crypto venture capital firm Dragonfly Capital has successfully closed its fourth fund, raising $650 million to invest in blockchain infrastructure and real-world asset (RWA) tokenization projects. The announcement comes despite what the firm describes as a "mass extinction event" in the crypto venture landscape, characterized by higher interest rates and declining token prices that have significantly reduced the pool of active investors.
The new fund represents Dragonfly's continued commitment to the crypto sector, with a strategic shift away from consumer applications toward more traditional financial products built on blockchain technology. According to Fortune, the firm is targeting credit card-like services, money market-style funds, and tokens tied to real-world 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, a general partner at Dragonfly, highlighting the firm's focus on financial infrastructure, stablecoins, on-chain finance, and tokenized RWAs. The fundraising was announced via an X post by fund general partner Rob Hadick, who echoed the challenging market conditions.
Dragonfly's fundraising history shows consistent growth: the firm raised approximately $100 million for its first fund in 2018, $225 million in 2021, and $650 million in 2022. The latest $650 million fund signals that substantial capital remains available for projects aiming to bridge blockchain technology with traditional finance, even during market downturns.
The broader crypto venture landscape has undergone significant transformation. While traditional early-stage venture deals slowed in 2025, capital has shifted toward public listings, private investments in public equity (PIPEs), debt raises, and post-IPO equity offerings. This indicates that more mature crypto companies are increasingly accessing public markets rather than relying solely on seed funding.
Data from The TIE reveals this trend is accelerating in 2026, with 111 crypto companies raising a combined $2.5 billion across IPOs, PIPEs, debt, and equity offerings in January alone. The sectors attracting the most investment include payments, exchanges, digital asset treasuries, and trading services, reflecting a clear pivot toward financial infrastructure rather than layer-1 blockchains or consumer applications.
