Venture capitalists love cryptocurrencies, as is evident by the rising number of VC firms dedicated to investing in digital assets. Now a new cryptocurrency VC fund investing in digital currencies is aiming to bridge the gap between Silicon Valley and China. The Dragonfly Capital Partners fund brings together a massive pool of $100 million. Its founders, Alexander Pack, and Bo Feng, represent one of the youngest crypto investors in Silicon Valley and one of the most experienced investors in China, respectively.
A New Crypto Fund Is Born
Dragonfly will invest in a variety of crypto-first funds, applications, and protocols. It will also dive into tech start-ups that are building infrastructure for crypto economies. Pack commented on the fund’s objectives, saying:
“Crypto is a new asset class, and it made sense to have a new firm to support it. We thought older ones would have a disadvantage.”
The founders of the fund are banking on Asian innovation in the crypto market. Asia could be one of the most important markets for crypto use cases, especially in terms of financial application.
Pack says that the fund is structured to operate “unconstrained,” because of which the fund doesn’t remain too caught up with established or larger firms. It has already invested about $20 million into 20 start-ups and funds. The fund receivers include price-stable currency basis and protocols like Spacemash and Oasis Labs.
MetaStable Capital also received funding from Dragonfly, and its general partner Haseeb Qureshi commented on the investment, saying:
“Despite crypto being a global and 24/7 market, it can often feel like two separate ecosystems between Asia and the West. Having a fund that can toe the line between the two hemispheres is a powerful advantage in being able to identify future trends and preempt where crypto is moving.”
Reputed Investor Backing
Even though Dragonfly is a new fund, Pack and Feng have good reputations in the market, especially in the emerging market category. Pack was earlier employed with Arbor Ventures and serving in Princeton in Asia teaching fellowship when he realized the potential for cryptocurrency growth in the region. He joined AngelList in San Francisco and built a crypto micro-fund soon after. This was followed by investments in Polychain Capital and Numerai. He then moved on to work with Bain Capital Ventures to lead its network investing wing, which invested in nontraditional opportunities and crypto funds.
The 20+ year veteran Feng met Pack as the two coinvested in a number of deals, including OKEx and Basis. Feng is the founder of Ceyuan Ventures.