Hack VC, a prominent crypto venture fund co-founded by blockchain experts Alex Pack and Ed Roman, has raised $77 million for its third fund, just shy of its $80 million target. According to filings with the Securities and Exchange Commission (SEC) and reports from internal documents, the fund is already considered “oversubscribed,” surpassing initial expectations.
Focus on Seed-Stage Crypto Investments
Hack VC, known for its focus on blockchain and crypto ventures, is channeling its latest fund into seed-stage investments. The firm began deploying capital from this fund in early 2023 and has already reported strong early returns. Investor documents reveal a net return of 1.7 times the initial capital invested, buoyed by the recent upswing in the crypto market.
Track Record of Strong Performance
Since its inception, Hack VC has experienced a mix of challenges and successes. Its first fund, launched in 2021, closed with $206 million in commitments but faced initial difficulties, ultimately returning 90% of its capital with a slight loss. Despite this, Hack VC forged ahead, raising a $150 million second fund in 2022, which shifted focus to later-stage companies and token investments.
The second fund yielded notable success, delivering a net return of 150%. Among its standout investments were io.net, a decentralized cloud computing network, and Elixir, a liquidity network for crypto exchanges. Half of the capital from this second fund—approximately $75 million—has already been deployed, with current holdings valued at $150 million.
Oversubscribed Third Fund and Continued Demand
Hack VC’s third fund, initially targeting a raise of at least $100 million, set a more conservative goal of $80 million but has already secured $77 million across two vehicles, including a feeder fund for international investments. This oversubscribed fund positions Hack VC as one of the largest crypto venture capital raises of 2024. Other notable raises include ParaFi’s $120 million fund, Lemniscap’s $70 million, and Accolade’s $135 million fund.
In a recent interview, co-founder Alex Pack likened the current state of the crypto industry to the internet in the mid-1990s, emphasizing the long-term growth potential of infrastructure investments. This perspective is reflected in Hack VC’s commitment to supporting blockchain infrastructure startups and seed-stage projects.
Crypto Market at a Crossroads
While Hack VC’s latest raise highlights continued interest in the crypto space, the broader market remains in flux. Although prices for leading assets like Bitcoin have stabilized after a brief rally spurred by the SEC’s approval of Bitcoin and Ethereum ETFs, regulatory uncertainty continues to cloud the industry’s future.
Despite these challenges, the crypto sector attracted $2.7 billion in funding across 503 deals during the second quarter of 2024, with infrastructure startups leading the way. Notable among these was Monad, a parallelization Layer 1 platform, which secured $225 million in Series A funding.
Hack VC’s continued success and its third fund’s oversubscription signal that, despite volatility and regulatory hurdles, investor appetite for blockchain and crypto innovation remains strong.
