Crypto fund DragonFly Capital introduced the launch of a brand new $225 million fund to spend money on tasks throughout the crypto area.
Following the success of the unique $100 million fund kickstarted in late 2018, the Dragonfly Fund II will goal 4 potential areas: decentralized finance (DeFi) protocols, non-fungible token tasks, Ethereum Layer 2-based companies, and centralized finance (CeFi) platforms.
The San Francisco-based enterprise capital fund have been early backers of notable tasks corresponding to ByBit, Compound, Celo, and Maker, amongst others. A lot of DragonFly Capital’s previous investments have been targeted on the DeFi area, however because the crypto area continues to quickly evolve, it’s clear that the fund is exploring new alternatives.
In a weblog submit, they acknowledged the chance of betting on unstable, “frothy” areas like NFTs. Non-fungible tokens have been all the craze this yr, with the business gaining mass-popularity as cryptos rallied to document highs. Driving on the contemporary NFT wave, digital market OpenSea raised $23 million in Collection C funding earlier this month.
As soon as the novelty wears out, nonetheless, it’s unsure whether or not the business can proceed its parabolic development. Regardless of such considerations, DragonFly Capital reiterated that these rising areas have the potential to develop into an “vital element of the digital future.”
Enterprise capital big Sequoia will again the fund as a strategic restricted associate, alongside OKEx, Huobi, Bitmain and Bybit. “Along with lots of the know-how and cultural leaders from US know-how companies and VCs, we’re in an unimaginable place to assist unite and push the crypto motion ahead,” mentioned Hasseb Qureshi, managing associate at DragonFly Capital.