HashKey Capital raises $500 million for its third crypto fund

Quick take

HashKey Capital has successfully raised $500 million for its third fund, which it believes is the perfect time to launch due to the current market conditions being at the “bottom of the next cycle.”

Hashkey Fintech Investment III

Crypto investment firm HashKey Capital has raised $500 million for its third fund, HashKey Fintech Investment III. The fund will focus on investing in infrastructure and application builders in the Web3. Despite initially targeting a close of $600 million, the fund’s CEO, Deng Chao, stated that timing was more important than size, and that the fund was closed at the bottom of the next cycle.

HashKey’s first two funds raised a combined $100 million, and the company currently has over $1 billion in assets under management. The company, a spinoff of Chinese conglomerate Wanxiang Group, was an early investor in Ethereum in 2014. The company plans to continue investing for the long-term with a focus on value. Chao said the new fund will continue investing in the long run with focus on value creation.

“We always hold a cyclical view towards the industry,” he said. “So when we evaluate a project, we look at it from a cyclical perspective — whether it would still be around after this cycle or would be able to survive the cycles to come.”

The Way Ahead for Hashkey

Investing in projects that promote growth and adoption within the cryptocurrency industry is a smart move in the current market, according to Chao of HashKey Capital. The investment firm, which has already deployed $100 million in its HashKey Fintech Investment III fund, is specifically interested in projects with practical applications and tools to ease the transition for new users from traditional web platforms to decentralized web3 systems.

HashKey is focused on investing in Ethereum, Polygon, and other Layer 2 networks. The firm’s current portfolio includes notable companies and projects such as Aztec, Blockdaemon, dYdX, Animoca Brands, Falcon X, Polkadot, and Coinlist. The fund aims to fully deploy its capital in the next 2-3 years through investments in projects at various stages, including both equity and token deals.

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