**Jim Pallotta's Raptor Digital Ramping Up: $200M DeFi Fund Takes Shape**

Big money is doubling down on decentralized finance. According to Bloomberg sources, legendary hedge fund operator Jim Pallotta is significantly scaling up his bets through Raptor Digital's upcoming $200 million second fund—marking a major capital influx into the blockchain and emerging tech space.

Raptor Group, the family office backing this initiative, is leading the charge as the primary investor. The Boston-based firm (formerly known as RW3 Ventures) plans to officially launch the new fund within the coming weeks, once it finishes returning capital to existing backers of the inaugural fund that wrapped up in 2023.

**Who's Behind the Money?**

The scale here is worth noting. Jim Pallotta, the 67-year-old veteran who previously ran operations at Paul Tudor Jones' hedge fund, already committed to Raptor Digital's first round—a $60 million fund completed three years ago. That earlier fund also attracted backing from Mubadala, Abu Dhabi's sovereign wealth division, signaling strong institutional confidence in the venture.

**What This Means for DeFi**

The $200 million second fund targets frontier technology areas, with blockchain development as a core focus. This isn't casual venture capital—it's serious dry powder being allocated to protocols and infrastructure at scale. Multiple institutional and family office contributors are participating, though specific limited partners remain under wraps per typical VC confidentiality practices.

The move underscores how traditional finance heavyweights are systematically expanding their exposure to decentralized systems, with proven investors like Pallotta treating this as a core strategic bet rather than a fringe allocation.