How HashKey Capital Built a Hexagonal VC: A 2022 Retrospective?
TechFlow Selected TechFlow Selected
How HashKey Capital Built a Hexagonal VC: A 2022 Retrospective?
After surviving the long winter, spring is still worth looking forward to.
Navigating Web3 tides with focused insights2022 marks the 7th year we have focused on blockchain and crypto investments.
We thank all founders and investors for their trust and support.
Currently, HashKey Capital manages over $1 billion in assets.
In 2022, HashKey Capital continued deepening its global investment strategy, covering the entire blockchain and crypto ecosystem.
Key focus areas include infrastructure, protocols, data layers, and Web3.
We also closely monitor data security, custody, DID, NFTs, Metaverse, GameFi, and applications.
Combining Depth and Breadth
Depth:
· Deep engagement with technical communities to identify emerging trends and technological directions at the earliest stage.
· Research-driven investment approach, leveraging independent research reports to deeply explore vertical sectors such as ZK, cross-chain, MPC, data, and gaming.
Breadth:
· Establishing long-term, in-depth partnerships with major public chain foundations through hackathons, ecosystem funds, and grants.
· Collaborating closely with global peer investment firms to share high-quality projects and accelerate their growth.
· Leveraging referrals from our portfolio (over 300 invested companies) to ensure comprehensive coverage of top-tier projects.
HashKey Capital = Hexagonal VC?
l Early Bets Thorough Exploration of Early-Stage Sectors
-
Capturing high returns for investors through advanced industry insights.
-
Among our portfolio, 68 projects received their first institutional funding round from us.
-
We also assist projects in formulating long-term strategic visions during early stages.
l Value Creation Through Portfolio Support
-
HashKey ensures stable growth for startups by providing comprehensive, tiered post-investment services tailored to each project’s development stage.
-
We help portfolio companies access resources, recruit talent, build brand awareness, and maintain compliance.
-
In 2022, 93 portfolio companies secured follow-on funding.
l Successful Fundraising for Third Fund
-
In 2022, we launched HashKey Fund III.
-
Successfully raised nearly $500 million, earning recognition from sovereign wealth funds and leading internet giants.
l Dual Regulatory Licenses Obtained
-
Hong Kong: Upgraded Type 9 license allows full investment into crypto assets.
-
Singapore: In-principle approval granted for CMS license.
l Recognition on Major Industry Rankings
-
CB Insights “Top 10 Global Crypto Funds Q3 2022”.
-
Fintech News HK “Top 10 Fintech Investors in Hong Kong 2022”.
-
Blockdata “Top 10 Blockchain & Crypto Investment Firms in Asia”.
l Enhanced Industry Influence
- Participated in premier industry events including Point Zero Forum, Singapore Fintech Festival, Hong Kong Fintech Week, and Wanxiang Blockchain Summit.
- Hosted flagship events such as Founders Day and Founders’ Club, contributing cutting-edge insights and offering open platforms for dialogue and collaboration.
Reflections from the HashKey Management Team on 2022 and Outlook for 2023:
- Deng Chao "DC"
- Head of HashKey Group Singapore
- CEO of HashKey Capital
"HashKey Capital was officially established in 2018. Since then, our mission has always been to serve as a trusted partner for institutional and professional investors, helping them capture high-growth opportunities in blockchain and digital assets through forward-looking industry insights and robust ecosystem resources.
Our first step after launch was securing local licenses from regulators in Hong Kong and Singapore, while demonstrating the value of partnering with HashKey to top-tier global service providers. As we approach 2023, our asset management platform now offers diversified strategies ranging from active investing to venture capital, proudly managing over $1 billion in client assets.
Over the past five years, HashKey has witnessed disruptive technological innovations in the blockchain industry. Having weathered at least three market cycles, we’ve cultivated the ability to remain calm and focused amid volatility. Through hundreds of meetings with institutional investors, service providers, fellow investors, and regulators, we’ve consistently advocated that for digital assets to achieve institutional adoption, what matters most are: regulatory compliance, strong operational and risk management capabilities, institutional-grade service providers, transparency, and experienced investment and operations teams.
Events in the second half of 2022, such as Celsius and FTX, were disheartening and disappointing. Clearly, these firms neglected the principles we uphold, highlighting how some players in the blockchain space still lack a compliance-first mindset.
At HashKey Capital, a team of over 30 experts is fully dedicated to advancing the company across operations, finance, legal, risk compliance, technical research, liquid asset management, and marketing. As a Type 9 licensed asset manager under Hong Kong’s Securities and Futures Commission and a licensed fund management firm recognized by the Monetary Authority of Singapore, our strict governance framework ensures regulatory transparency, adherence to sound compliance procedures, and rigorous cybersecurity controls.
As a regulated entity in both Hong Kong and Singapore, HashKey Capital’s financial statements must be audited by an independent auditor—we work with Deloitte, one of the Big Four accounting firms.
Additionally, HashKey Capital appoints regulated, qualified custodians to safeguard client assets. Fund assets are strictly segregated from custodian assets. We require custodians to provide insurance, establish independent fund management entities for each fund, and conduct KYC and AML checks before investor onboarding. Moreover, our funds do not borrow, lend, or use leverage in any form.
While the collapse of FTX calls for pause and reflection across the serious crypto market participants, we remain convinced that mainstream adoption of crypto is not only possible—it is already here.
Looking ahead to 2023, we remain confident. Despite ongoing turbulence, the progress and evolution of the blockchain and crypto industry cannot be stopped.
In 2023, we will continue responsible investing—conducting thorough due diligence to identify high-potential opportunities aligned with HashKey’s goals and values. We will also continue actively supporting our existing portfolio companies through ongoing management and resource allocation. To better serve our portfolio, we will assess and adjust our team structure to ensure we have the necessary expertise and resources to create value. Furthermore, we will deepen our focus on emerging markets and strengthen relationships with key developer communities, including active participation in industry events and collaborations with other organizations to build brand reputation among targeted audiences."
-
James Boettcher (USA)
-
Senior Advisor, HashKey Capital
-
Co-founder, Focus Ventures
"In 2022, we saw more dishonest behavior toward investors than anyone expected. However, the collapses of FTX, Voyager, TerraLuna, Celsius, and others do not undermine the fundamental advantages of blockchain technology. Many seasoned technologists still believe that open, distributed ledgers and permissionless, censorship-resistant, trust-minimized computing are reshaping every aspect of the global economy.
In fact, in the long run, the collapse of FTX should accelerate mass adoption of crypto by bringing more regulation into the space—an outcome welcomed by many advocates. Although 'irrational exuberance' led to the dot-com bubble burst in the early 2000s, TCP/IP and the technology stack built upon it ultimately revolutionized communication, entertainment, and education for most businesses and individuals. Much of this innovation was driven by venture capitalists, and I hope the same will be true for Web3 innovation and development. Today, we see meaningful progress in modular open finance or financial primitives, enabling programmable money and services like transactions, lending, mobile payments, and fractional ownership of real-world assets. This is followed by diverse advancements in Web3, where AI, machine learning, and blockchain empower developers to build decentralized applications (dApps). These dApps operate independently without centralized intermediaries, giving users sovereignty over their personal data and allowing them to capture part of its value.
For example, a growing trend sees mainstream brands like the Golden State Warriors and Hermès using NFTs for branding—NFTs that can automate royalty payments to creators upon resale. By the end of 2020, there were already 103 corporate and 45 crypto unicorns, plus 23 listed companies—and this trend is just beginning.
Therefore, my view is that although the industry remains in its early stages, Web3 and blockchain will completely transform traditional processes across industries, creating enormous venture capital opportunities globally."
- Arron Liu (Singapore)
- Senior Advisor, HashKey Capital
- Former Head of Portfolio Management, Asia & Japan, PIMCO
- Former Chair of CFA Institute Board of Governors
"Current attention on blockchain and Web3 resembles past hype cycles around emerging technologies, often followed by sharp corrections within new cycles.
New cycles are typically defined by three phases: enthusiasm, speculation, and eventual convergence with reality. The commercialization of blockchain, Web3, and tokenization follows this pattern. What may differentiate the current cycle is the influx of low-cost capital fueled by near-zero global interest rates over the past decade, which has simultaneously inflated bubbles across capital markets. Technological advancement has outpaced regulators’ ability to assess, supervise, and control new technologies. This mirrors early developments in derivatives, structured products, and securitized investments. Many recall how derivatives were once condemned as 'weapons of mass destruction,' especially following Black Monday (1988), LTCM (1997), and even the Global Financial Crisis (2008). Yet despite these crises, derivatives evolved into one of the largest and most important tools for risk management, liquidity, and price discovery. Thus, technology—as a double-edged sword—will continue to excite both believers and skeptics alike.
Ultimately, what matters most is whether the ends justify the means. Perhaps this is where regulators play the most crucial role—not stifling innovation before it can be fairly evaluated. The industry now needs sound oversight, and regulators can contribute significantly by ensuring transparency without compromising privacy or increasing innovation costs."
- Yong Hak Huh (Hong Kong)
- Senior Advisor, HashKey Capital
- Former Official, Hong Kong Monetary Authority
- Former Head of JPMorgan Asia M&A and TMT
"The defining events of 2022—the collapses of FTX, BlockFi, Three Arrows Capital, Celsius Network, Terra, and Luna—accelerated the arrival of the 'crypto winter.' Some outside observers may feel they’ve witnessed both the birth and demise of the crypto industry. But our team has lived through cycles before and knows that spring always follows winter. While these incidents were undoubtedly tragic for affected investors, in the long term, they may ultimately benefit the industry, as regulatory scrutiny and financial safety will now become central themes for sustainable growth.
Of course, much work remains for the crypto industry to achieve parity with the traditional banking system in terms of regulation and adoption, and to become a significant asset class in institutional portfolios. Cryptocurrencies and crypto firms must earn institutional trust through four key pillars:
1. Regulatory Oversight and Compliance: Institutional investors will only trust cryptocurrencies and firms operating under robust regulatory frameworks that protect their investments.
2. Credit Systems: Investors seek proper credit and debt safeguards. Crypto-related firms must establish compliant processes to securely manage entrusted capital.
3. Long-Term Vision: Institutions want to invest in trustworthy companies and build sustainable, long-term relationships. Companies must articulate clear strategies to assure investors of enduring capital growth.
4. Transparent Operations: Institutions need reliable, up-to-date information about crypto firms’ operations to make informed investment decisions."
Through the winter, spring remains worth waiting for.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
