Investors behind the virtual hack.summit (), a major blockchain program event, have launched a $ 200 million crypto seed fund under the hack of Hack VC, fund partner Alex Pack told Referus in an interview.
Ed Roman, a former solo GP, has invested in early tech and crypto companies for more than 10 years using Hack VC before partnering with Pack, who co-founded the crypto global fund Dragonfly Capital and led Bain. Capital Ventures’ in digital commodity trading. Each Pack and Roman have invested in a number of early crypto companies before launching the fund, which includes the DeFi Compound Finance and Terra platforms, Pack said.
Hack VC covered the collection last fall and has been very active since then – the fund has made “at least” 15 investments worth tens of millions of dollars so far, according to Pack. Its latest investments include various areas within crypto – from the beginning of the NFT emoji on Yat, to the GoldFinch Finance DeFi loan platform, to the flexible gaming company SynCity.
Hack thesis was the one that was worn to invest in what the Pack describes as the “scaffold” of the digital rights system across the internet, which puts a special emphasis on emerging markets.
“The easy-to-use nature of the digital rights system is a traditional digital value store, like Bitcoin, but to be honest, that doesn’t interest me much, like building digital gold or anything. I think it has its place, but for me, building this land rights system that allows anyone in the world to participate in an open financial system is really great, ”said Pack.
The Hack VC team is made up of about 10 people, about half of whom work within its dedicated Crypto Lab, which Pack sees as a source of competition for the company. Crypto networks are for users, so it is important that investors in crypto companies become the first users of new contracts, Pack said.
“We have to stay on top. We have to be more than money. More than just random trading [traditional] VC, we must implement these agreements, ”said Pack.
Crypto Lab for Hack VC, led by former chief trader at quant hedge fund Jane Street, has hired engineers and quantity researchers to do just that. Its team is committed to contributing to network security and is “one of the most active participants” in the DeFi ecosystem by marketing, supporting governance and providing funding to various programs, “Pack said.
The lab also aided hack source deals with on-chain data analysis, he added.
Hack VC has raised seed money for LPs including Sequoia Capital, Fidelity and Marc Andreessen of a16z and Chris Dixon, as well as other institutional investors. A few of these LPs are active crypto investors themselves, including Sequoia, who last week raised a ~ $ 500 million fund to invest in tokens. Firms like Sequoia and a16z invest in other crypto currencies while also managing their investments in the same sector are very common in the crypto world, although these companies compete intellectually for the same types of deals.
Pack said the split is a remnant of the early days when investing in crypto startups was “anti-competitive.”
“At the end of the day, we all support each other’s finances… Now, there’s more competition. We used to send each other deals, otherwise our companies would collapse. But now, we are still friends, ”said Pack.
Today, Hack VC has “extensive merchant relationships” with other business firms in space, partly due to Pack’s involvement in providing seed support to more than a dozen crypto currencies, including Multicoin, Polychain, Paradigm, Standard and Paraffin, esh.
However, he believes that Hack VC brings a unique value to the ecosystem in support of deep, robust, first-class crypto companies. Hack VC, however, is considering a joint venture with some of its LPs elsewhere – recently investing in a metaverse launch alongside Twitch founder Justin Kan, which develops Kan’s in-depth gaming experience, he added.
The package demonstrates the support of Hack VC gained from other crypto venture investors in its unique community of developers built with hack.summit.
“We have spent years building one of the largest blockchain community organizations in crypto, and that is very rare. It is difficult for a traditional VC firm to build [that] for structural reasons, ”said Pack.
“That’s why I left Bain Capital Ventures a day later – if you’re a soft team … you can’t just add a big arm of the community, you can’t just add 10-plus 10 people or a small business team.”