Hack VC Launches $150 Million Venture Fund to Invest in Web3 Technology
Web3 venture capital firm Hack VC has announced its first venture fund, raising $150 million “opportunistically, in a bear market.” Having already raised $200 million for their crypto fund earlier this year, Hack VC’s total assets under management now exceed $425 million.
Despite skepticism about the investability of web3, co-founders and managing partners Alex Pack and Ed Roman remain committed to the sector. Their focus lies in investing in technical infrastructure, which they consider the foundation for building longer-term applications. While the firm did not disclose specific investors, it revealed that some of the largest US pensions funds, endowments, and foundations have joined the venture fund.
Hack VC’s portfolio includes companies like Eigenlayer, Goldfinch, Bitwave, and Babylon. In addition to their investments, the firm is known for hosting developer conferences and hackathons, attracting over 135,000 attendees from more than 150 countries in nine years. With the launch of the new venture fund, Hack VC aims to signify a new up-cycle in the crypto and web3 space and demonstrate its long-term commitment to the sector.
Security within blockchain technology is a key focus for Hack VC, along with DeFi (Decentralized Finance) and AI (Artificial Intelligence). The firm believes that despite the current market conditions, DeFi is a temporary phenomenon and sees the long-term potential of financial technology within web3. Consumer-facing technology, particularly in gaming and NFTs, is not a primary interest for Hack VC, as they focus more on technology infrastructure and DeFi.
Hack VC compares the current state of web3 technology to the internet in the mid-1990s: scarce, complicated, and expensive. They believe that web3 requires a paradigm shift in scalability, security, and usability before it can achieve mainstream adoption. In an effort to invest in the foundational technology of future digital giants, Hack VC operates Hack.Labs(), an in-house, full-stack tech platform that supports founders from early development stages to mainstream market presence.
Analyst comment
Positive news: Hack VC Launches $150 Million Venture Fund to Invest in Web3 Technology
As an analyst, I predict that the market for web3 technology will receive a boost with the launch of Hack VC’s $150 million venture fund. This fund, coupled with their existing crypto fund, shows their long-term commitment to the sector. With support from large US pensions funds and foundations, the market will likely see increased investment in technical infrastructure, leading to the development of longer-term applications. Hack VC’s focus on security, DeFi, and AI further demonstrates their belief in the potential of web3 technology.
