The fundraising for Hack VC’s third investment fund has been very successful and exceeded expectations.
The fund is now considered “oversubscribed,” as it has raised over $77 million, even though it’s slightly below its target of $80 million. This information, reported by Fortune, comes from SEC filings and internal documents.
The new fund, which targets seed-stage investments, reportedly started deploying capital in 2023 and has already achieved a net return of 1.7 times the invested capital. Investor documents reveal that these early investments have rapidly appreciated due to the recent upswing in the crypto sector.
In the last three years, Hack VC has launched three funds. The first fund in 2021 closed with $206 million in commitments but faced some challenges, returning 90% of its invested capital and showing a slight loss overall. Despite this, the firm moved forward and raised a $150 million second fund in 2022, this time focusing on later-stage companies and token investments.
According to investor documents, this second fund has deployed $75 million—50% of its committed capital. The most lucrative investments to date include io.net, a decentralized cloud computing network, and Elixir, a liquidity network for crypto exchanges.
In a February interview, Alex Pack, one of the VC’s founders, compared the crypto industry to the internet’s mid-90s stage, stating that their second fund would focus on supporting infrastructure projects.
Bloomberg reported in March that the VC firm aimed to raise at least $100 million for its third fund. However, an investor who spoke with Fortune indicated that the actual target was $80 million.
Despite the smaller size, this fund positions Hack VC among top crypto VCs that has raised significant capital in 2024. For context, ParaFi recently announced a $120 million fund, Lemniscap revealed a $70 million fund, and Accolade reportedly raised over $135 million across two vehicles. Also, despite its substantial new $850 million fund announced in June, Paradigm’s latest effort falls short compared to its 2021 fund of $2.5 billion.
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