TLDR:
- Hack VC raises $150 million fund to invest in web3 startups
- Despite a decline in funding for cryptocurrency startups, the firm has already invested a significant portion of the fund
Summary:
The venture capital firm Hack VC has announced a $150 million fund to invest in startups involved in web3, crypto, and AI. Despite a decrease in funding for cryptocurrency startups over the past year, Hack VC has already invested around one-third of its newly launched fund, targeting early-stage companies. The firm has actively invested in various web3 infrastructures, including defi protocols, real-world asset tokenization, and AI-driven projects, ranging from hundred thousand dollars to several million dollars.
Hack VC had previously established a $200 million fund in 2022, making it $350 million for aggregate commitments of both funds with a total AUM of $425 million. The firm has made investments in companies like blockchain startup Mysten Labs and crypto finance firm Amber Group. Despite challenges in the industry, Hack VC is excited about the infrastructure opportunity in early-stage VC.
The firm aims to support initiatives involved in decentralizing the internet, creating frameworks for decentralized banking, and bridging the gap between cryptocurrency and artificial intelligence. Pack, the managing partner, is particularly interested in businesses using blockchain technology to simplify and lower the cost of processing power for tasks like training AI language models. Pack believes that despite the changes in the cryptocurrency market, there is still immense opportunity for growth, stating that “we’re very early.”
