Key Takeaways
- • Hack VC has raised $77 million for its third blockchain fund, exceeding its $80 million target and achieving oversubscription status, with capital deployment beginning in 2023.
- • The third fund, focused on seed-stage investments, has already delivered a net return of 1.7x capital invested, demonstrating strong early performance amid crypto sector recovery.
- • Hack VC's second fund ($150 million Venture Fund I, launched 2022) has achieved 150% net returns, while its first seed fund ($206 million, 2021) has underperformed with 90% net return (capital loss).
- • The firm, founded by blockchain veterans Alex Pack (former Dragonfly co-founder and Huobi advisor) and Ed Roman, demonstrates resilience in the institutional crypto venture market despite the 2022-2023 crypto downturn.
- • The oversubscription signals renewed institutional investor confidence in specialized crypto funds following the broader sector recovery, contrasting with megafunds' dominance during the 2021-2022 cycle.
Summary
Hack VC, a specialist crypto venture capital firm, has secured $77 million toward its third blockchain fund, surpassing its initial $80 million fundraising target according to SEC filings and internal documents reviewed by Fortune. The fund, which began deploying capital in 2023, has already achieved a net return of 1.7 times invested capital, indicating strong performance recovery in the blockchain sector. The oversubscription reflects renewed institutional appetite for focused crypto investments despite the industry's significant downturn in 2022-2023.
The firm's performance trajectory reveals a mixed but ultimately strengthening track record across its three funds. Hack VC's inaugural $206 million seed fund, raised in 2021, has returned 90% of capital—a loss reflecting the broader crypto market collapse that followed the 2022 peak. However, the second fund—a $150 million Venture Fund I launched in 2022 focused on later-stage companies and tokens—has generated substantially stronger returns at 150% net, demonstrating the firm's ability to capture value in the recovery phase. The third fund's early 1.7x return on seed-stage investments suggests the firm has successfully repositioned its thesis and timing.
Hack VC was founded by Alex Pack, who previously co-founded Dragonfly Capital and served as an advisor at crypto exchange Huobi, and Ed Roman. The firm operates within a market segment distinct from the megafunds such as Andreessen Horowitz Crypto, Paradigm, and Haun Ventures, which accumulated multibillion-dollar assets during the 2021-2022 bull market. Hack VC's success at fundraising and capital deployment represents a broader institutional shift toward specialized, smaller-ticket crypto managers that can navigate both downturns and recoveries more effectively than generalist platforms. The firm declined to comment on the fundraising announcement.
The firm's performance trajectory reveals a mixed but ultimately strengthening track record across its three funds. Hack VC's inaugural $206 million seed fund, raised in 2021, has returned 90% of capital—a loss reflecting the broader crypto market collapse that followed the 2022 peak. However, the second fund—a $150 million Venture Fund I launched in 2022 focused on later-stage companies and tokens—has generated substantially stronger returns at 150% net, demonstrating the firm's ability to capture value in the recovery phase. The third fund's early 1.7x return on seed-stage investments suggests the firm has successfully repositioned its thesis and timing.
Hack VC was founded by Alex Pack, who previously co-founded Dragonfly Capital and served as an advisor at crypto exchange Huobi, and Ed Roman. The firm operates within a market segment distinct from the megafunds such as Andreessen Horowitz Crypto, Paradigm, and Haun Ventures, which accumulated multibillion-dollar assets during the 2021-2022 bull market. Hack VC's success at fundraising and capital deployment represents a broader institutional shift toward specialized, smaller-ticket crypto managers that can navigate both downturns and recoveries more effectively than generalist platforms. The firm declined to comment on the fundraising announcement.
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