Crypto fund DragonFly Capital announced the launch of a new $225 million fund to purchase projects throughout the crypto area.
Following the success of the initial $100 million fund kickstarted in late 2018, the Dragonfly Fund II will target 4 potential areas: decentralized financing (DeFi) procedures, non-fungible token tasks, Ethereum Layer 2-based companies, and centralized financing (CeFi) platforms.
The San Francisco-based venture capital fund have been early backers of notable projects such as ByBit, Compound, Celo, and Maker, among others. Much of DragonFly Capital’s previous financial investments have actually been focused on the DeFi area, however as the crypto area continues to rapidly develop, it’s clear that the fund is checking out brand-new chances.
Notable jobs DragonFly Fund I has actually backed to date. In an article, they acknowledged the risk of banking on unstable,” frothy “areas like NFTs. Non-fungible tokens have actually been all the rage this year, with the industry acquiring mass-popularity as cryptos rallied to tape highs. Riding on the fresh NFT wave, digital market OpenSea raised $23 million in Series C financing previously this month.
When the novelty breaks, nevertheless, it’s uncertain whether the market can continue its parabolic growth. Despite such concerns, DragonFly Capital restated that these emerging spaces have the potential to become an “important element of the digital future.”
Equity capital giant Sequoia will back the fund as a tactical minimal partner, along with OKEx, Huobi, Bitmain and Bybit. “Together with a number of the technology and cultural leaders from United States innovation companies and VCs, we’re in an extraordinary position to assist unify and push the crypto movement forward,” said Hasseb Qureshi, handling partner at DragonFly Capital.