July 21, 2024
Hack VC Secures $150M for Investments in Crypto and AI Startups
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Hack VC Secures $150M for Investments in Crypto and AI Startups

Hack VC, a Web3 venture capital firm, has successfully raised $150 million for investments in early-stage crypto and artificial intelligence (AI) startups. The New York-based firm outlined its investment strategy in a statement on February 20, highlighting a focus on decentralized finance (DeFi), real-world asset (RWA) tokenization, and blockchain infrastructure solutions in the crypto sector.

Hack VC’s upcoming investments will primarily target projects aiming to enhance user-friendliness and capital efficiency within the crypto space. Additionally, the firm is keen on supporting initiatives that address security concerns, particularly focusing on mitigating smart contract and protocol hacks reminiscent of issues faced by early internet users in the 1990s. Hack said:

“The next Google, Microsoft, Amazon, and Alibaba for Web3 is already here or will launch soon.”

According to Hack VC, a fundamental infrastructural paradigm shift is required across scalability, security, and usability before Web3 is considered ready for mainstream adoption. The company affirmed its dedication to the intersection of “Web3 x AI,” with plans to support projects resembling past beneficiaries like Jasper AI and Ritual. Jasper AI serves as a generative AI copilot for enterprises, while Ritual functions as an AI coprocessor tailored for blockchains.

Despite a prolonged bear market that saw the total crypto market contract from $3 trillion to $828 billion between 2021 and 2023, as per CoinGecko data, Hack VC maintained its “deep conviction” for crypto. The firm had previously secured a $200 million seed fund in February 2022, dedicated to supporting early-stage crypto startups.

Hack VC disclosed that its future investments would range from smaller projects with solo founders, receiving hundreds of thousands of dollars, to larger projects in which the firm has strong confidence, attracting several million dollars in funding. Having made over 100 investments and backed numerous unicorns (startups exceeding $1 billion in value) since entering the Web3 space in 2014, Hack VC’s total assets under management now stand at approximately $425 million.

In the broader context of Web3-related venture funding, the fourth quarter of 2023 saw a total of $1.9 billion invested, indicating a 2.5% increase from the third quarter. Notably, this marked the first growth in investments in Web3 firms since the first quarter of 2022.

Significant contributions to this funding surge came from Lightspeed Faction, which launched a $285 million fund for Web3 startups in November 2023. China’s National Engineering Laboratory also joined the fray, announcing a $10 billion Web3 fund in December 2023, with a focus on virtual reality, the metaverse, and nonfungible tokens.

Image by jcomp on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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