Hack VC Secures $77 Million for Its Third Fund, Exceeding Investment Targets

Prominent crypto investment firm Hack VC has successfully raised $77 million for its third fund, approaching its goal of $80 million.

The fund has surpassed expectations and is now regarded as “oversubscribed,” according to a report by Fortune, which referenced filings with the Securities and Exchange Commission (SEC), internal documents, and sources knowledgeable about the situation.

Established by Alex Pack and Ed Roman, both experienced blockchain professionals, Hack VC is concentrating its latest fund on seed-stage investments.

Hack VC’s Latest Fund Achieves Notable Returns

The firm began allocating capital from this fund in 2023, realizing notable early returns.

Documents provided to investors indicate a net return of 1.7 times the original capital invested, benefiting from a recent rise in the crypto market.

Hack VC initiated its first fund in 2021, concluding with $206 million in commitments.

However, the fund encountered some initial difficulties, returning 90% of its invested capital and reflecting a slight overall loss.

Nevertheless, this did not dissuade the firm from progressing, as it raised a $150 million second fund in 2022, this time targeting later-stage companies and token investments.

The second fund yielded a net return of 150%, achieving notable success in projects such as io.net, a decentralized cloud computing network, and Elixir, a liquidity network for cryptocurrency exchanges.

JUST IN: @hack_vc, a crypto venture fund established by blockchain veterans @alpackaP and @ed_roman, has raised $77 million for an oversubscribed third blockchain fund, documents reveal. pic.twitter.com/S3gwuz3KLM

— Satoshi Club (@esatoshiclub) September 16, 2024

In a recent discussion, Pack characterized the crypto sector as being in a phase akin to the internet in the mid-90s, highlighting the long-term potential for infrastructure investments.

The second fund has already deployed $75 million—half of the committed capital—and its assets are currently valued at $150 million.

Hack VC’s third fund, initially projected to raise at least $100 million, has experienced strong interest from investors, despite a revised target of $80 million.

As of late August, the fund has already secured over $77 million through two vehicles, including a feeder fund for international investments.

Hack VC Achieves One of the Largest Crypto Fund Raises

Hack VC’s third fund positions it among the largest crypto-focused venture capital raises in 2024.

Other significant funds include ParaFi’s $120 million raise and Lemniscap’s $70 million.

Accolade, a blockchain fund of funds, also recently raised $135 million across two vehicles, while Paradigm announced an $850 million fund, considerably smaller than its 2021 offering of $2.5 billion.

Despite new capital entering the sector, the cryptocurrency market remains at a pivotal point.

Prices for major assets like Bitcoin have stabilized following a brief surge earlier this year, driven by the U.S. SEC’s approval of Bitcoin and Ethereum ETFs.

However, regulatory uncertainty continues to impact the industry, and mainstream adoption has progressed more slowly than expected.

As reported, in the second quarter of 2024, crypto startups managed to secure $2.7 billion in funding across 503 deals, indicating a slight increase in capital raised despite a noticeable drop in deal volume.

Infrastructure startups led the funding landscape during Q2, with significant rounds raised by Monad, a parallelization Layer 1 platform, which obtained $225 million in Series A funding.

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