Wednesday, May 22, 2024

Hack VC raises $150M to back crypto and AI startups


Web3 enterprise capital agency Hack VC has raised $150 million to spend money on early-stage crypto and AI startups.

In a Feb. 20 statement, The New York-based VC agency mentioned that decentralized finance (DeFi), real-world asset (RWA) tokenization and blockchain infrastructure options could be the goal sectors for many of its crypto-focused investments.

Its future investments will deal with initiatives that make crypto extra user-friendly and “capital-efficient” in addition to initiatives that purpose to reduce sensible contract and protocol hacks, which Hack says are paying homage to viruses that plagued early web customers within the Nineteen Nineties.

“Web3 wants an infrastructural paradigm shift throughout scalability, safety, and value earlier than it’s prepared for prime time,” Hack mentioned.

“The subsequent Google, Microsoft, Amazon, and Alibaba for Web3 is already right here or will launch quickly.”

The VC agency added it will additionally make investments closely within the “Web3 x AI” area, together with funding in initiatives related to people who it has already funded, similar to Jasper AI, a generative AI copilot for enterprises, and Ritual, an AI coprocessor for blockchains.

Hack shared that it had maintained a “deep conviction” for crypto regardless of a chronic bear market that noticed the overall crypto market shrink from $3 trillion to $828 billion from 2021 by means of 2023, per CoinGecko knowledge.

Hack beforehand raised a $200 million seed fund in February 2022, geared toward backing early-stage crypto startups.

Hack mentioned its upcoming investments will vary from tons of of 1000’s of {dollars} for smaller initiatives with solo founders to a number of thousands and thousands for initiatives the agency has conviction in.

The VC agency has revamped 100 investments and seeded dozens of “unicorns” — startups that attain a worth above $1 billion — because it entered into the Web3 area in 2014, together with Ethereum infrastructure agency Consensys, layer-1 blockchain Sui and decentralized wi-fi community Helium

The agency’s complete property underneath administration now sit at round $425 million.

Associated: Wormhole raises $225M at $2.5B valuation

Enterprise funding for Web3-related firms totaled $1.9 billion in the fourth quarter of 2023, latest knowledge reveals.

It marked a 2.5% improve from the third quarter, which was the primary time investments into Web3 corporations elevated for the reason that first quarter of 2022.

One of many largest investments within the fourth quarter got here from Lightspeed Faction, which launched a $285 million fund for Web3 startups in November.

China’s state-owned Nationwide Engineering Laboratory additionally introduced it will launch a $10 billion Web3 fund in December, centered on digital actuality, the metaverse and nonfungible tokens.

Journal: OKX token’s $6.5B flash crash, crypto exec ‘Mr Bang’ on the run: Asia Express