Dragonfly Capital Secures $3.5 Million In Seed Funding
- Dragonfly Capital has secured around $3.5 million in seed funding as per reports to develop its Debt DAO or Decentralized Autonomous Organization
- The cross-border crypto asset platform has partnered with GSR, Fasanara Capital, and Numeus for the development of the DAO
Crypto credit protocol Debt DAO has reportedly secured $3.5 million in a seed funding round. In an announcement shared with The Block, it is revealed that the prominent cross-border crypto assets investment firm Dragonfly Capital led the seed funding round for Debt DAO, with participation from GSR, Fasanara Capital, and Numeus.
Debt DAO, which provides revenue-based financing for “crypto native entities,” including DAOs and protocols, uses a smart contract called “Spigot” to “secure borrower’s on-chain cash flows to automatically repay lenders.”
The report reveals that six angel investors also backed Debt DAO in the new funding round, which primarily included Coinbase CTO Balaji Srinivasan, Chainlink Labs’ David Post, and TrueFi’s Ryan Rodenbaugh.
Commenting on the new financing, Haseeb Qureshi, general partner at Dragonfly Capital, said that in the current scenario, Debt is one of the biggest missing pieces from the Decentralized finance markets. He believes that Debt DAO is one of the strongest firms in this ecosystem to solve that problem.
“As on-chain organizations and cash flows proliferate, revenue-generating DAOs will no longer need to sell off their native tokens for working capital. Debt DAO will pull the entire DAO financing ecosystem forward.”Qureshi added.
Dragonfly Capital’s prominence
The Cayman Island-based Dragonfly Capital is known for its prominent venture raises. Having invested in around 55 projects, including Dydx’s $10 million Series A in October 2018, Dune Analytics’ $2 million seed round in September 2020, and Avalanche’s $12 million private token sale in June 2020, among others.
Recently, Dragonfly also led a $5.5 million funding round for DeFi company LI.FI, which saw participation from Lattice, Scalar Capital, Coinbase, 6th Man Ventures, and RockTree Capital, among others.
The company, which mainly focuses on DeFi, DAOs, scaling smart contracts, and NFTs, has closed mainly three funding rounds. Dragonfly participated in funding in two rounds securing $100 million and $200 million in October 2018 and December 2020, respectively. In May 2022, it closed its $650 million valued third venture fund with participation from Tiger Global, KKR, Sequoia China, and Invesco.