Crypto venture capital firm Dragonfly Capital has closed its fourth fund, raising $650 million to invest in what it sees as the next phase of blockchain companies.
The new vehicle is Dragonfly’s fourth fund, according to an article by fund general partner Rob Hadick. Fortune reported that instead of pursuing consumer applications, the company has hinted that it is targeting more traditional financial products built on blockchain rails, including credit card-style services and money market-style funds, as well as tokens tied to real-world assets such as stocks and private credit.
This shift reflects a broader pivot from crypto to financial infrastructure and on-chain finance, including payments, lending, stable coin systems and real-world tokenized assets.
“This is the biggest meta shift I can feel in all my time in the industry,” said Tom Schmidt, general partner at Dragonfly.
The fundraising comes after what Hadick described as a “mass extinction event” in the crypto VC ecosystem, as higher interest rates and falling token prices shrank the pool of investors.
Dragonfly had already raised around $100 million for its first fund in 2018, around $225 million in 2021 and $650 million in 2022. The latest fund of $650 million indicates that despite slowdown in venture capital investment in cryptocurrenciesLarge pools of capital still support projects aimed at connecting blockchain technology more directly to traditional finance.
Related: VC Roundup: Amid Crypto Funding Crisis, Stablecoin and RWA Infrastructure Attract Capital
Crypto VC Priorities, Shifting Focus Areas
Venture capital funding for blockchain companies cooled in 2025, but that doesn’t mean the capital is gone. Instead, the the mixture has changed.
Traditional early-stage venture deals has slowed, while more money has started flowing in via public listings, private investment in public equity (PIPE), debt raises, and post-IPO equity offerings – a sign that more mature crypto companies are tapping into public markets rather than relying solely on funding rounds.
This shift appears to accelerate in 2026. Last month, 111 crypto companies raised a total of $2.5 billion through IPOs, PIPEs, debt and equity offerings, according to data of the TIE. This figure suggests that institutional capital is returning, although it is flowing through different channels than during the last bull cycle.
The sectoral orientation has also evolved. Instead of supporting layer 1 blockchains and consumer-facing applications, investors are directing their capital toward stablecoin infrastructure, institutional custody, digital asset treasury strategies, and trading platforms.
Related: “Massive Consolidation” Expected in Crypto Industry: Bullish CEO
