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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Prominnet crypto fund Hack VC has raised $77 million for its third fund, nearing its target of $80 million.
The fund has exceeded expectations and is now considered “oversubscribed,” Fortune reported, citing filings with the Securities and Exchange Commission (SEC), internal documents, and sources familiar with the matter.
Founded by Alex Pack and Ed Roman, two seasoned blockchain experts, Hack VC is focusing its latest fund on seed-stage investments.
Hack VC’s Latest Fund Achieves Impressive Returns
The firm started deploying capital from this fund in 2023, achieving impressive early returns.
Documents shared with investors reveal a net return of 1.7 times the initial capital invested, benefiting from a recent upswing in the crypto market.
Hack VC launched its first fund in 2021, closing with $206 million in commitments.
The fund, however, saw some early challenges, returning 90% of its invested capital and showing a slight loss overall.
Nonetheless, this did not deter the firm from moving forward, raising a $150 million second fund in 2022, this time focusing on later-stage companies and token investments.
The second fund delivered a net return of 150%, with notable success in projects such as io.net, a decentralized cloud computing network, and Elixir, a liquidity network for crypto exchanges.
In a recent interview, Pack described the crypto industry as being in a similar phase to the internet in the mid-90s, underscoring the long-term potential for infrastructure investments.
The second fund has already deployed $75 million—half of the committed capital—and its holdings are currently valued at $150 million.
Hack VC’s third fund, initially expected to raise at least $100 million, has seen strong demand from investors, despite a lower target of $80 million.
As of late August, the fund has already secured more than $77 million across two vehicles, including a feeder fund for international investments.
Hack VC Secures One of Largest Crypto Fund Raises
Hack VC’s third fund places it among the largest crypto-focused venture capital raises in 2024.
Other notable funds include ParaFi’s $120 million raise and Lemniscap’s $70 million.
Accolade, a blockchain fund of funds, also recently secured $135 million across two vehicles, while Paradigm announced an $850 million fund, significantly smaller than its 2021 offering of $2.5 billion.
Despite new capital inflows into the sector, the cryptocurrency market remains at a crossroads.
Prices for leading assets like Bitcoin have stabilized after a brief rally earlier this year, fueled by the U.S. SEC’s approval of Bitcoin and Ethereum ETFs.
However, regulatory uncertainty continues to weigh on the industry, and mainstream adoption has been slower than anticipated.
As reported, in the second quarter of 2024, crypto startups managed to attract $2.7 billion in funding across 503 deals, marking a slight increase in capital raised despite a noticeable decline in deal volume.
Infrastructure startups led the funding race during Q2, with significant rounds raised by Monad, a parallelization Layer 1 platform, which secured $225 million in Series A funding.
