HashKey Capital closes $500m fund for crypto startups

HashKey Capital, the Hong Kong-based firm, has closed its third fund at $500 million, The Block reports.

HashKey Fintech Investment III targets investments in crypto assets, focusing on infrastructure solutions and decentralized applications.

The fund began raising more than a year ago. The initial fundraising target was $600 million, but the bear market has adjusted the plans.

“We are at the bottom of the next cycle,” said Dan Chao, head of HashKey Capital.

The previous two funds raised a combined $100 million. The current assets under management exceed $1 billion.

HashKey Group — a subsidiary of Wanxiang Group, a Chinese conglomerate — was one of the early investors in Ethereum in 2014.

Chao emphasised that the new structure will continue to invest for the long term, “focusing on value”.

“When we evaluate a project, we assess it in the context of the cycle — whether it will exist after it or be able to endure subsequent market phases,” said Chao.

According to him, the current environment is a good time to invest in projects aimed at growing the crypto industry and broad adoption. In particular, HashKey is interested in tools to facilitate the transition from Web 2.0 to Web3, Ethereum-based solutions, the ecosystem Polygon and L2.

To date, HashKey Fintech Investment III has already made investments totaling $100 million. The firm’s portfolio includes Aztec, Blockdaemon, dYdX, Animoca Brands, Falcon X, Polkadot and Coinlist.

Earlier, the blockchain project Venom Foundation launched a $1 billion fund for investments in Web3.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.