Dragonfly Capital Invests In Debt DAO In Seed Round $3.5 Million

Crypto-focused investment firm Dragonfly Capital led a $3.5 million seed round for crypto credit protocol Debt DAO.

Dragonfly Capital invests in Debt DAO

Dragonfly Capital led a $3.5 million seed round for crypto credit protocol Debt DAO, according to a press released shared with The Block.

Debt DAO provides revenue-based financing for “cryptonative entities,” which includes DAOs and protocols. It does this through a smart contract called “Spigot,” which the company says “can secure borrower’s on-chain cash flows to automatically repay lenders.”

In the round, GSR, Numeus, and Fasanara Capital also took part. In the latest round of funding, the initiative received support from six other angel investors, including David Post of Chainlink Labs and former Coinbase CTO Balaji Srinivasan.

“Right now, debt is one of the big missing pieces from the DeFi universes, and Debt DAO is one of the strongest teams in this space tackling 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.”

Dragonfly Capital general partner Haseeb Qureshi said in a statement

In May, Dragonfly Capital closed its third venture fund with a $650 million oversubscription. In a statement, it described its primary priority areas as scaling smart contracts, DAOs NFTs, and DeFi.

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