Hack VC, a Web3 venture capital firm based in New York, has successfully raised $150 million to invest in early-stage startups in the crypto and artificial intelligence (AI) sectors. The firm plans to focus its investments on decentralized finance (DeFi), real-world asset (RWA) tokenization, and blockchain infrastructure solutions within the crypto space.
Hack VC aims to support projects that enhance the user-friendliness and efficiency of cryptocurrencies, as well as those that address the issue of smart contract and protocol hacks. The firm draws a parallel between these hacks and the viruses that plagued early internet users in the 1990s, emphasizing the need for a paradigm shift in the infrastructure of Web3 to ensure scalability, security, and usability.
In addition to its investments in the crypto industry, Hack VC intends to heavily invest in the intersection of Web3 and AI. The firm has already funded projects such as Jasper AI, an AI copilot for enterprises, and Ritual, an AI coprocessor for blockchains. By expanding its investments in the “Web3 x AI” space, Hack VC aims to foster innovation and development in this promising field.
Despite the bear market experienced in the crypto industry from 2021 to 2023, Hack VC has maintained a strong belief in the potential of cryptocurrencies. The total crypto market shrank from $3 trillion to $828 billion during this period, according to CoinGecko data. However, Hack VC remains committed to supporting early-stage crypto startups and has already raised a $200 million seed fund in February 2022.
Hack VC has an impressive track record in the Web3 space, having made over 100 investments and seeded numerous unicorns since its entry in 2014. Some notable investments include Consensys, an Ethereum infrastructure firm, Mysten Labs (the team behind layer one blockchain Sui), and Helium, a decentralized wireless network. The firm’s total assets under management now amount to approximately $425 million.
The growing interest in Web3-related companies is evident in the recent surge in venture funding. In the fourth quarter of 2023, investments in Web3 firms reached a total of $1.9 billion, marking a 2.5% increase from the previous quarter. Notably, Lightspeed Faction launched a $285 million fund for Web3 startups, and China’s National Engineering Laboratory announced a $10 billion Web3 fund focused on virtual reality, the metaverse, and nonfungible tokens.
In summary, Hack VC has secured $150 million in funding to support early-stage startups in the crypto and AI sectors. The firm aims to drive innovation in decentralized finance, real-world asset tokenization, and blockchain infrastructure solutions. With a strong belief in the potential of Web3 and AI, Hack VC is committed to nurturing the growth of promising projects in these fields.