Crypto Venture Capital Giant Hack VC Raises $77 Million for Its ‘Oversubscribed’ Third Fund
Date: 2024-09-17 Author: Gabriel Deangelo Categories: BUSINESS
Prominent crypto venture capital fund Hack VC has raised $77 million for its third fund, approaching its $80 million target.
The fund has exceeded expectations and is now considered “oversubscribed,” Fortune reports, citing documents filed with the U.S. Securities and Exchange Commission (SEC), internal documents, and people familiar with the matter.
Founded by Alex Pack and Ed Roman, two seasoned blockchain experts, Hack VC is focusing its latest fund on early-stage investments.
Hack VC’s Latest Fund Is Making Impressive Progress
The firm has begun distributing capital from this fund in 2023, achieving impressive early results.
Documents presented to investors show a net return of 1.7x on the initial capital invested, driven by the recent rally in the crypto market.
Hack VC launched its first fund in 2021, completing $206 million in commitments.
The fund faced some early challenges, returning 90% of the capital invested and posting a small loss overall.
That didn’t stop the firm, however, and in 2022 it raised a second $150 million fund, this time focused on later-stage companies and token investments.
The second fund delivered a net return of 150%, noting success in projects like io.net, a decentralized cloud computing network, and Elixir, a liquidity network for crypto exchanges.
In a recent interview, Pak compared the crypto industry to the mid-90s internet phase, highlighting the long-term potential of infrastructure investments.
The second fund has already distributed $75 million — half of the committed capital — and its assets are currently valued at $150 million.
Hack VC’s third fund has raised one of the largest VCs in crypto
Hack VC’s third fund, which initially aimed to raise at least $100 million, has seen strong demand from investors despite a more modest target of $80 million.
By the end of August, the fund had already raised over $77 million across two vehicles, including a fund for international investments.
Hack VC’s third fund puts it on par with the largest crypto-focused VC rounds in 2024.
Other notable raises include $120 million from ParaFi and $70 million from Lemniscap.
Accolade, a fund of funds, also recently raised $135 million across two vehicles, while Paradigm announced an $850 million fund, a significant drop from its $2.5 billion offering in 2021.
Despite the influx of new capital into the sector, the crypto market remains at a crossroads.
Prices of leading assets like Bitcoin have stabilized after a brief rally earlier this year, fueled by the SEC’s approval of Bitcoin and Ethereum ETFs.
However, regulatory uncertainty continues to weigh on the industry, and mainstream adoption of cryptocurrencies has been slower than expected.
As previously reported, crypto startups were able to raise $2.7 billion in funding across 503 deals in Q2 2024, representing a slight increase in capital despite a noticeable decline in deal counts.
Infrastructure startups led the way in fundraising in Q2, with big rounds like the $225 million raised by Monad, a Layer 1 platform for parallelization.
