Hack VC is a web3 venture capital firm that partners on- and off-chain with hackers, building the future of the internet. Pulse 2.0 interviewed Hack VC managing partner Alex Pack to learn more about the firm.
Alex Pack’s Background
What is Pack’s background? Pack said:
“I have over a decade of institutional experience in the crypto space, previously working as an analyst in Hong Kong, where I recognized the global potential for cryptocurrency applications. Prior to Hack VC, I co-founded Dragonfly, a multi-billion Web3 investment firm with a presence in China and the US. My experience also includes roles as an investment director at Bain Capital, where I helped launch the firm’s Web3 investment practice, a senior advisor to Huobi, a leading crypto exchange in Asia, and a partner at AngelList.”
“I’ve seeded hundreds of Web3 startups and have a deep passion for the transformative potential of blockchain technology. My journey led me to co-found Hack VC, a Web3 venture fund focused on early-stage opportunities.”
Evolution Of Hack VC’s Thesis
How has Hack VC’s thesis evolved? Pack noted:
“Our firm’s thesis has evolved to focus on infrastructure investments within the Web3 space. We’ve identified the need for scalability, security, and usability improvements to drive mainstream adoption, akin to the challenges faced by the early internet in the mid-90s. At Hack VC, we go beyond traditional investment approaches by leveraging our in-house tech platform, Hack.Labs. This platform facilitates institutional-grade network participation, allowing our team of blockchain engineers and quantitative researchers to provide liquidity, stake assets, make open-source contributions, and more.”
Significant Milestones
What have been some of your firm’s most significant milestones? Pack cited:
“Some of our firm’s most significant milestones include raising a $150 million opportunity fund in a bear market, bringing our total AUM to about $425 million. We’ve also advised over 100 Web3 projects at and prior to Hack VC, contributing to the growth of the sector through many cycles.”
Investment Success Stories
After asking Pack about investment success stories, he highlighted:
“We were one of the first investors in a decentralized derivatives exchange, currently processing $100 million in volume daily. One notable success story from our portfolio is Crusoe Cloud, a unicorn now valued at over a billion dollars. Originally a Bitcoin mining company utilizing clean energy, its innovative approach holds significant potential for future AI applications.”
“Additionally, we’re proud of our investments in infrastructure protocols like EigenLayer, a novel restaking and data availability mechanism for blockchain developers, and Berachain, a Cosmos-based Layer 1 protocol focusing on DeFi use cases. AltLayer, a roll-up-as-a-service investment, aims to address scalability issues in blockchain networks. These ventures demonstrate the diversity and potential of our portfolio in shaping the future of decentralized technology.”
Differentiation From Other Firms
What differentiates Hack VC from other firms? Pack affirmed:
“Hack VC stands apart through our hyper-focus on the crypto space, rigorous diligence process, deep industry knowledge, and hands-on support for our portfolio companies. We prioritize early-stage startups addressing infrastructure and security challenges in crypto, aiming to drive mainstream adoption.”
“We’re also committed to fostering innovation and collaboration within the global developer community. We’ve established a robust community via initiatives like Hack.Summit, one of the world’s largest blockchain programmer events, attracting over 130,000 attendees from 150+ countries across various events to date.”
Challenges Faced
What challenges have Pack and the team faced in building the firm? Pack acknowledged:
“This last down-cycle was flashier than prior ones. As interest rates rose around the world, the speculation-fueled leverage that pooled in the crypto markets exploded, unearthing criminal activity and headline-worthy developments along the way, such as the infamous blowup of FTX. Beneath the surface, however, the cycle wasn’t much different than the others. Builders continued building—and we continued investing—through the doom and gloom and, as we anticipated, a new up-cycle has emerged.”
Future Goals
What are some of your firm’s future goals? Pack pointed out:
“Moving forward, we want to continue to invest in early-stage web3 opportunities, driving advancements in infrastructure and security and contributing to the mainstream adoption of Web3 technologies.”
Additional Thoughts
Any other topics to discuss? Pack concluded:
“Hack VC has always been open to exploring the broader landscape of the crypto sector. The potential impact of emerging technologies like gen AI on crypto and the importance of regulatory improvements for the sector’s long-term viability is at the forefront of our minds as we look to invest in new companies.”
