New Venture Capital Fund Secures $100M to Invest in Crypto Startups
Dragonfly Capital Partners, a new crypto-focused venture capital firm, has announced the launch of its first $100 million fund dedicated to investments in crypto assets. Its investors include Okex, Bitmain and other well-known names in the industry.
Meet Dragonfly Capital Partners
Dragonfly promises to invest in three types of assets: crypto-native funds, “pick-and-shovel” tech startups and decentralized protocols and applications. It launches with a portfolio of more than 20 investments, including cryptofunds and asset managers, the stablecoin Basis, Spacemesh and Oasis Labs.
The founding team is led by managing partners Alexander Pack and Bo Feng. Pack previously managed crypto and fund investing for Bain Capital Ventures and was a general partner investor in Polychain Capital. Feng is the founding partner of Ceyuan Ventures and the largest investor in Okex, among many other ventures.
“Throughout our years of investing in crypto at our respective VC firms, we realized how difficult it is for incumbent investment firms to participate in this tech trend. The issue is that crypto is not just a new technology but a new tech-driven asset class, something we haven’t witnessed in decades,” said Pack. “A new asset class calls for a new breed of asset manager. That’s why we launched a crypto-dedicated fund and why we invest in other cryptofunds.”
Bringing East and West Together
Dragonfly claims to have identified a market opportunity to “bridge the gap between East and West in the crypto economy,” and thus has attracted investors from throughout the U.S. and Asia.
American investors include Salil Deshpande (Bain Capital Ventures), Marc Andreessen and Chris Dixon (A16Z), Cyan Banister (Founders Fund) and Olaf Carlson-Wee (Polychain Capital). Asian investors include Neil Shen (head of Sequoia China), Eric Xu (founder of Baidu), Bob Xiaoping Xu (founding partner of Zhenfund), Zhang Tao (chairman and founder of Meituan-Danping), Bao Fan (founder and CEO of China Renaissance Bank), Cai Wensheng (founder and chairman of Meitu), Justin Tang (founder and CEO of X Financial, elong), JP Gan (Qiming Venture Partners), and Annie Xu (head and general manager of Alibaba U.S.).
“I see a parallel between the internet boom in the ’90s and the current cryptocurrency market opportunity,” said Feng, who was one of the first venture investors on the internet. “The crypto revolution may be even bigger than the internet and more global. We take an ecosystem approach, investing in fund managers around the world and connecting the top technologists from the West to the largest crypto companies and user bases in Asia.”