The crypto market shows no signs of slowing down as currencies and investors alike continue to move large amounts of capital into the ecosystem. Today’s proof of change: Dragonfly Capital, a crypto-centered investment firm, has closed its third trading volume of $ 650 million, the company’s managing partner, Haseeb Qureshi, told TechCrunch.
The fund is heavily registered, with the help of a limited number of partners including Tiger Global, KKR, Sequoia China, Ivy League endowments, Invesco, Top Tier Capital Partners, and a state-owned investment company in the South. -oriental Asia, and others. The company originally planned to raise $ 500 million, according to a filing U.S. Securities and Exchange Commission January 2022.
So far, Dragonfly has funded it about 60 companies through its previous funds launched in 2018 and 2021 $ 100 million and $ 225 million, respectively. Dragonfly plans to focus its investment on all levels of blockchain and crypto-native companies, protocols, and tokens.
“We see many opportunities at different levels and through the life cycle of a company or protocol,” Qureshi said. “Also, the market has also grown tremendously. When we first started investing, the whole crypto market was several hundred billion and now it is in multitrillions.”
In addition, the appearance of the capital has changed since the old Dragonfly economy, Qureshi said. “There is a lot of understanding about the importance of crypto. There is a lot more interest in crypto investing not only in traditional VCs or crypto VCs, but also in traditional institutions now entering crypto investment because they recognize how is important for this product. “
After working for a software engineer, Qureshi caught a crypto bug in 2017, he joked. Within a year, his company began its initial investment with an investment team of a small number of former technicians ranging from computer scientists to voters, Qureshi said.
“It is really important to have that basic technical knowledge when investing in advanced crypto technologies,” Qureshi said. “Investing in crypto without understanding technology is like investing in biology without understanding biology. You will lose the mechanics at the core of what you are investing in.
There is a lot of excitement among the crypto community and investors around games-to-earn games, infrastructure for independent organizations (DAOs), and the development of web3 tools, Qureshi said. But Dragonfly will continue to invest in those areas, as well as distributed finance, smart contracts, NFTs, metaverse, and other sectors of the crypto environment, he said.
“If you are a crypto investor, I do not think it is your job to choose one segment that you think will be in the future,” Qureshi said. The fact of the matter is that we do not know. The future is not yet written. When people come out and build, they will decide where the future lies [of crypto] He is walking. “
Overall, 2022 is looking for another hot crypto year in terms of capital investment. Last year, more than $ 30 billion was collected by crypto companies and about $ 13 billion was collected in the first four months of 2022, according to PitchBook data.
In addition, post-investment capital valuations for crypto-blockchain-supported companies rose by an average of 91%, to $ 3.95 billion, according to PitchBook report. Average global VC ratings, on the other hand, fell 14% to $ 697.6 million.
The growth of the crypto sector is not only affecting investors but companies and institutions, too, Qureshi noted. “[They] They are preoccupied with reforming themselves and beginning to understand how the changing landscape from the crypto industry will affect what they do and how they manage their business. “
“It is really clear that the whole world is now recognizing the importance of this industry,” Qureshi said. “After everything that happened last year, there is no question that crypto will be something.”