Key Takeaways
- • Hack VC has raised $77 million for its third blockchain fund, exceeding its initial $80 million target and achieving an oversubscribed close, according to SEC filings and internal documents reviewed by Fortune.
- • The third fund, focused on seed-stage crypto investments, began deploying capital in 2023 and has already generated a net return of 1.7x invested capital, demonstrating strong early performance amid the crypto sector's recent upturn.
- • Hack VC's second fund ($150 million Venture Fund I, launched in 2022) has achieved a net return of 150%, while its inaugural $206 million seed fund from 2021 has underperformed, returning only 90% of capital—illustrating the divergent performance across the firm's fund vehicles.
- • The firm's success contrasts with the broader crypto VC landscape, where mega-funds like a16z crypto, Paradigm, and Haun Ventures dominated 2021–2022 capital raises but have since faced market headwinds; Hack VC's mid-tier positioning and seed-stage focus appear to have positioned it favorably in the current cycle.
- • Hack VC was founded by blockchain veterans Alex Pack (former Dragonfly cofounder and Huobi advisor) and Ed Roman, establishing the firm as part of the second tier of crypto venture investors with proven expertise across exchange operations and early-stage venture investing.
Summary
Hack VC, a blockchain-focused venture capital firm founded by industry veterans Alex Pack and Ed Roman, has secured $77 million in commitments for its third fund, surpassing its initial $80 million goal to achieve an oversubscribed close. According to SEC filings and internal investor documents reviewed by Fortune, the fund began investing capital in 2023 and has already delivered a net return of 1.7 times the original capital deployed, signaling robust early-stage performance during a recovery period for the crypto sector.
The capital raise underscores a notable shift in the venture crypto landscape. While mega-funds such as a16z crypto, Paradigm, and Haun Ventures accumulated billions during the 2021–2022 bull market, mid-tier and seed-focused managers like Hack VC are experiencing strong fundraising momentum. Pack, who previously cofounded Dragonfly Capital and served as an advisor to the Huobi exchange, brings substantial domain expertise to the firm's investment thesis.
Hack VC's track record across its fund portfolio reveals mixed but increasingly positive results. The firm's first seed fund, raised in 2021 at $206 million, has returned only 90% of invested capital—a loss reflecting the post-2022 crypto downturn. However, its second vehicle, the $150 million Venture Fund I launched in 2022 and focused on later-stage companies and tokens, has significantly outperformed with a 150% net return. The third fund's early 1.7x return on capital, though preliminary, suggests the firm's seed-stage strategy is capturing emerging winners in an improving market environment.
The timing and performance of this third fund raise indicate growing institutional confidence in selective crypto venture exposure during a period of consolidation and opportunity identification. The oversubscription signals strong demand from limited partners for experienced managers with proven ability to identify early-stage blockchain projects, particularly as the sector stabilizes following the volatility of 2022–2023.
The capital raise underscores a notable shift in the venture crypto landscape. While mega-funds such as a16z crypto, Paradigm, and Haun Ventures accumulated billions during the 2021–2022 bull market, mid-tier and seed-focused managers like Hack VC are experiencing strong fundraising momentum. Pack, who previously cofounded Dragonfly Capital and served as an advisor to the Huobi exchange, brings substantial domain expertise to the firm's investment thesis.
Hack VC's track record across its fund portfolio reveals mixed but increasingly positive results. The firm's first seed fund, raised in 2021 at $206 million, has returned only 90% of invested capital—a loss reflecting the post-2022 crypto downturn. However, its second vehicle, the $150 million Venture Fund I launched in 2022 and focused on later-stage companies and tokens, has significantly outperformed with a 150% net return. The third fund's early 1.7x return on capital, though preliminary, suggests the firm's seed-stage strategy is capturing emerging winners in an improving market environment.
The timing and performance of this third fund raise indicate growing institutional confidence in selective crypto venture exposure during a period of consolidation and opportunity identification. The oversubscription signals strong demand from limited partners for experienced managers with proven ability to identify early-stage blockchain projects, particularly as the sector stabilizes following the volatility of 2022–2023.
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