Hack VC raises $150M to fund crypto and AI startups
Web3 venture capital firm Hack VC has raised $150 million to invest in early-stage crypto and artificial intelligence (AI) startups.
In a February 20 statement, the New York-based VC firm said decentralized finance (DeFi), real-world asset (RWA) tokenization and blockchain infrastructure solutions will be the target sectors for most crypto-based investments.
We wrote all about the new $150M venture fund (bringing AUM to ~$420M) in our recent blog. Learn more about our vision for the fund, our deep belief in Web 3, and our passion to support our founders. Read more: https://t.co/zTPDe2mE4V
— Hack VC (@hack_vc) February 20, 2024
Future investments will focus on projects that make crypto more user-friendly and “capital efficient,” as well as projects that seek to reduce smart contract and protocol hacks, which he says are reminiscent of the viruses that plagued Internet users in the past. 1990s.
“Web3 will require a combination of infrastructure changes before it's ready for prime time.
“The next Google, Microsoft, Amazon, and Alibaba for Web 3 is already there or about to launch.”
He added that the VC firm will invest heavily in the “Web3 x AI” space, investing in projects similar to those it has previously funded, including Jasper AI, a generative AI assistant for enterprises, and Ritual, an AI co-processor. blockchains.
According to CoinGecko data, the total crypto market will shrink from $3 trillion to $828 billion from 2021 to 2023, but Huck shared that he has “deep faith” in crypto despite the prolonged bear market.
Haq previously raised $200 million in seed funding in February 2022.
Huck said his recent investments range from hundreds of thousands of dollars for small projects by lone founders to several million dollars for larger projects that the company has committed to.
The VC firm has made more than 100 investments and seeded dozens of unicorns — startups valued at more than $1 billion — since entering the Web3 space in 2014, including Ethereum infrastructure firm Consensys, Layer-1 blockchain Sui and decentralized wireless network Helium.
The company's total assets now sit at around $425 million.
Related: Wormhole Raises $225M at $2.5B Value
The latest data shows that venture capital funds totaled $1.9 billion in the fourth quarter of 2023.
It showed a 2.5% increase from the third quarter, marking the first increase in investment into Web3 companies since the first quarter of 2022.
One of the largest investments in the fourth quarter came from Lightspeed Faction, which launched a $285 million fund for Web 3 startups in November 2023.
In the year In December 2023, China's state-owned National Engineering Laboratory announced the launch of a $10 billion Web3 fund focused on virtual reality.
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