Hack VC Secures $150 Million to Fund Crypto and AI Startups in the Web3 Space
Summary:
Hack VC, a New York-based venture capital firm specializing in Web3, has collected $150 million to fund early-stage crypto and AI companies. The firm stated that projects aimed at enhancing crypto usability and capital efficiency, as well as reducing smart contract breaches, will be prioritized. Despite a bearish crypto market from 2021 to 2023, Hack maintains a strong conviction in the asset class. Additionally, the company plans to actively invest in the Web3 and AI crossover space. To date, Hack has invested in over 100 initiatives, helping many startups achieve unicorn status.
Venture capital firm Hack VC, which focuses on Web3, has amassed $150 million to put towards early-phase blockchain and AI startups. The New York-based investment firm signaled in a statement dated February 20 that it would principally deploy these crypto-centric capital resources towards decentralized finance (DeFi), real-world asset (RWA) tokenization, and blockchain support systems. Future capital allocation will highlight projects geared at creating a more user-friendly and efficient crypto environment while minimizing smart contract and protocol violations that Hack acknowledges have parallels with the viruses that disrupted early internet functions in the 90s.
Hack holds that Web3 requires a structural revolution to realize enhanced scalability, security, and usability. It expressed optimism about the future of the Web3 space, hinting at a possible entry of big tech equivalents of Google, Microsoft, Amazon, and Alibaba. The company also indicated its intention to throw its weight behind the blend of Web3 and AI, channeling resources towards initiatives alike its earlier endowments such as Jasper AI and Ritual. In spite of the crypto bear market narrowing down the total crypto market from $3 trillion to $828 billion between 2021 and 2023, as the data from CoinGecko reveals, Hack maintains a strong belief in the asset class.
In February 2022, Hack had rallied a $200 million seed fund designed to support fledgling crypto enterprises. The company revealed that forthcoming investments would vary in scale from hundreds of thousands of dollars for smaller, single-founder projects to several million dollars for larger projects with proven track records. To date, Hack has notched up over 100 investments, helping numerous startups hit the billion-dollar mark since its entry into Web3 in 2014. Among the firms it has backed include Consensys, Sui, and Helium. Consequently, the company's total managed assets approximated $425 million.
According to recent data, total venture funding for companies in the Web3 field hit $1.9 billion in Q4 of 2023, marking a 2.5% surge from Q3, which recorded the first increase since Q1 2022. Among the notable investments in the last quarter of 2023 include Lightspeed Faction's $285 million fund for Web3 startups, launched in November. Also, China's state-run National Engineering Laboratory announced it would set up a $10 billion Web3 fund, targeting virtual reality, metaverse, and nonfungible tokens in December.
Published At
2/21/2024 8:23:08 AM
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