Hack VC: Riding the Crypto Wave

February 22, 2024, 7:34 am
Hack VC, a New York-based venture firm, recently raised a hefty $150 million fund to invest in early-stage crypto startups. This move comes after a tough year for the digital asset industry, signaling a renewed optimism among investors.

Founded in 2017 by Ed Roman and Alexander Pack, Hack VC has a mixed track record, with successful investments in well-known crypto startups like Consensys and Republic, but also some notable flops like Terraform Labs and BlockFi. Despite these ups and downs, the firm now boasts an impressive $425 million in assets under management.

In a strategic move, Hack VC has set aside capital to support protocols on-chain, in addition to its traditional equity-based venture investing. This forward-thinking approach reflects the firm's commitment to staying ahead of the curve in the rapidly evolving crypto landscape.

While overall VC funding for crypto startups saw a significant dip in 2023 compared to previous years, there are signs of a rebound. In Q4 2023, startups raised $1.9 billion across 326 deals, marking a slight increase in capital invested over the previous quarter. This uptick, coupled with the recent approval of several bitcoin ETFs, has reignited investor interest in the crypto market.

Hack VC is not alone in its bullish outlook on crypto. Other crypto-focused VCs like RW3 Ventures, Lightspeed Faction, and Blockchain Capital have also been actively fundraising, despite a slower market for deployment. With the market for digital assets on the rise, investors at both the VC and LP level are placing their bets on a crypto resurgence in the near future.

As Hack VC rides the wave of this crypto optimism, it remains to be seen how their latest fund will fare in the ever-changing landscape of digital assets. But one thing is clear – in the world of crypto investing, fortune favors the bold.