HashKey Raises $500M to Build Web 3 Applications

Hong Kong-based venture capital (VC) firm Hashkey Capital has announced the closing of its third fund, dubbed HashKey FinTech Investment Fund III (“Fund III”), with $500 million in committed capital. The HashKey FinTech Investment Fund III was backed by institutional investors including sovereign wealth funds, corporations, and family offices. 

Fund III to Support Crypto and Blockchain Initiatives

The fund will invest in crypto and blockchain initiatives globally, “focusing on the growing opportunities in emerging markets,” according to Hashkey. The Hong Kong-based firm stated that the fund will also provide “investors with institutional-grade exposure to all facets of blockchain and crypto technologies.” 

“This new fund aims to invest primarily in infrastructures, toolings, and applications that have potential for mass adoption,” the firm added.

Founded in 2018, HashKey Capital is the investment arm of the HashKey Group, a global asset manager investing in blockchain and crypto. The firm says it has managed over $1 billion in client assets since inception. Its portfolio companies include Cosmos, Coinlist, Aztec, dYdX, Animoca Brands, Mask Network, FalconX, Polkadot, Moonbeam, Galxe, and more.

Aside from Hong Kong, HashKey also operates in Singapore and has a significant presence in Japan and the United States.

The latest development comes at a time when the crypto sector is experiencing major turmoil following the dramatic fall of major industry players, including BlockFi and FTX.

“HashKey Capital has weathered at least three cycles in the industry. These unique experiences and insights will be invaluable to us in navigating through turbulence,” Chao said.

VC Activities Soften Amid Bear Market

Meanwhile, according to data from the crypto website DeFiLlama, VC activities in the crypto sector have begun to reduce as they become more cautious with their investments due to the market turmoil.

According to the DeFiLlama data, in 2022, VC funding in the sector dropped from $8.6 billion in Q1 to $6 billion in Q2 to $3.5 billion in Q3 and to $2.7 billion in Q4.