Dragonfly Capital Partners, a new venture fund, has just announced a $100 million fund solely dedicated to cryptocurrency investments. The company, founded by managing partners Alexander Pack and Bo Feng, together bring more than 24 years of venture capital experience to the crypto realm. Pack and Feng are looking to use their new fund to bridge the gap between the East and West in the crypto economy. They hope to join the crypto industry’s most significant individuals and companies across geographic and asset type boundaries.
Like the internet boom of the 1990s, blockchain technology and its implementation in the cryptocurrency industry, has the potential to further the reach of what is possible to achieve in business. Blockchain tech provides a platform that can lead to purely transparent, democratized, and safe trade for an even more globalized economy. Feng, one of the first venture investors in the Internet and founding partner of Ceyuan Ventures, echoes this idea in a press release announcing the new fund. “I see a parallel between the Internet boom in the ‘90s and the current cryptocurrency market opportunity,” said Feng. “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.”
While Feng brings decades of experience in venture capital to Dragonfly Capital Partners, 26-year-old Pack brings that youthful enthusiasm that pervades the space, which has allowed young people like Brock Pierce to become billionaires in near record timing. Pack founded Bain Capital Ventures’s Network Investing practice to bring crypto investment into the fund.
“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.”
Dragonfly boats of an elite array of initial investors, bringing together some of the most recognized names in the global blockchain game. These include OKEx, one of the largest cryptocurrency exchanges, along with blockchain mining company Bitmain. Other investors span the globe from Bain Capital Ventures and Polychain Capital to the founder of China’s mega technology company, Baidu.
The find is launching with a portfolio of more than 20 investments ranging from cryptofunds and asset managers, protocols and applications that will help to lay the foundation for a decentralized economy further, and even startups that are building bridges between the traditional centralized economy and the future decentralized world.
Of course, any fund is measured on how it manages the funds entrusted to its care. Time will tell if the push toward decentralization will catch on in a meaningful way. Firms such as Dragonfly have the potential to impact that transition, while both enriching its investors and facilitating technologies to help make the world a better place.