As funds and investors continue to deploy massive amounts of capital into the market, there is no sign of it slowing down. Haseeb Qureshi, the managing partner of Dragonfly Capital, told TechCrunch that the firm closed its third venture fund for $650 million.
The fund was oversubscribed with limited partners including Tiger Global, KKR, Sequoia China, Ivy League endowments, and an undisclosed Southeast Asian state-owned investment company. The firm initially planned to raise $500 million.
Almost 60 companies have been invested in by the previous funds of $100 million and $225 million, respectively. The company plans to focus its investments on all stages of the companies.
The market has grown so much that we see more opportunities across the different stages. When we first started investing, the market for cryptocurrencies was a few hundreds of billions and now it is in the multitrillions.
The capital landscape has changed since the previous funds. There is a lot more interest from traditional institutions that are getting into the business of investing in cryptocurrencies because they realize how important it is.
After working as a software engineer, Qureshi caught a bug. Qureshi said his firm launched its first fund with an investment team made up of a few ex-techies.
It is important to have technical fundamental knowledge when investing in early-stage technology. You wouldn't be missing the core mechanics of what you're investing in.
Qureshi said there is a lot of excitement in the community and investors around play-to-earn gaming. He said that the company will continue to invest in those areas, as well as other sectors in thecryptocurrencies.
I don't think your job is to pick out one sector that you think will be the future, Qureshi said. The future is still being worked out. As people show up and build, they will determine where the future of the coin is going.
The year 2022, is looking to be a hot year for capital investments in the field of digital currency. According to data from PitchBook, more than $30 billion was raised by the companies last year and more than $13 billion has been raised in the first four months of the year.
According to a PitchBook report, late-stage post-money valuations for venture capital-backed companies in the space rose on average 91%. The average global late-stage VC valuations dropped by more than 12%.
They are scrambling to figure out how to retool themselves and start understanding how this paradigm shift coming from the crypto industry will affect what they do and how
It is clear that the world now knows how important this industry is.
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