Hack VC debut $ 200 million early phase funds for crypto and web3 startups

Hack VC debut $ 200 million early phase funds for crypto and web3 startups

The risk capital company Hack VC based in San Francisco has put on a 200 million dollar fund that focuses on the financing of crypto, web3 and blockchain startups in the early phase.

This can be seen from a report by the news agency VC Finsmes Fund by the managing partners Alex Pack and Ed Roman jointly managed and receives support from Sequoia Capital, Fidelity, Marc Andreessen from A16Z, Chris Dixon and others.

hack VC focuses on investments in start-ups in the early phase, which work in the areas of crypto, open source, fintech, artificial intelligence, machine learning and company software. The company "Crypto OG" recently participated as an existing shareholder in the extended series B increase in the startup Amber Group in the amount of $ 200 million that exercised its proportional rights.

Roman, which is also the managing director of the company, told Blockworks that the fund size was "appropriate" for Hack's strategy and the portfolio construction for investments in Web3.

"This fund is actually a bit modest compared to the fund sizes that other companies have applied in this area," said Roman. "There are a number of crypto companies that now have well over $ 1 billion."

In fact, the investments from risk capital overlooked $ 33 billion last year after 49 new funds were introduced with an average size of $ 300 million. Some of the biggest funds of the previous year were the 2.5 billion dollar fund from Paradigm, the $ 2.2 billion fund from Andessen Horowitz, the 1.5 billion dollar fund from HiveMind Capital Partners and the $ 750 million funds from 10T Holdings.

A large part of this capital indicates web3 applications and platforms that aim to democratize data and to return control to the end user by using blockchain technology, decentralized finance (defi) and digital assets.

"We consider Web3 as the second half of the Internet," said Roman. "We also consider Defi as a new financial system that complements our existing traditional financial system. When was the last time we had a new financial system? This is a unique opportunity."

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The contribution "Hack VC debut 200 million $ Early-Stage Fund Targeting Crypto, Web3 Startups" is not a financial advice.