Partner at HashKey Capital
Check size: Firm-level public estimate: typically $1M-$5M, varying by stage and opportunity
Xiao looks for durable, real-use-case crypto products that can bring users from Web2 into Web3 and survive multiple market cycles. Public interviews show a broad mandate across DeFi, gaming, stablecoins, and AI, with especially strong interest in DePIN and real-world-asset tokenization, as well as Ethereum and Layer 2 ecosystems.
Start with the real user problem and demonstrate why blockchain materially improves the product. Show a low-friction Web2-to-Web3 onboarding path, evidence the company can survive a full market cycle, and explain ecosystem fit. For DePIN or RWA, address mechanism design, timing, regulation, custody, interoperability, and the link to real-world demand.
Products with real use cases and low-friction onboarding that bridge Web2 users into Web3, plus infrastructure that connects blockchain to the physical economy or regulated real-world assets. Xiao also emphasizes teams and products capable of lasting beyond a single crypto cycle.
The public thesis argues against cycle-dependent projects without a durable use case, credible path to mass adoption, or tooling that substantially reduces the friction of moving users from Web2 into Web3.
Assess whether a project has a real use case, can keep creating value after the current market cycle, and lowers the practical friction of moving users from Web2 into Web3. Source: https://www.theblock.co/news/deals/2023-01-17-crypto-hashkey-capital-third-fund-500-million-202755
For DePIN, evaluate the incentive mechanism first, then market timing and the underlying hardware/user fundamentals that determine whether real adoption is plausible. Source: https://hashkey.capital/news/details43_205.html
“Projects that have real use cases and are focused on building tooling for easily onboarding new users from web2 to web3.”
— https://www.theblock.co/news/deals/2023-01-17-crypto-hashkey-capital-third-fund-500-million-202755
A cross-sector review of ZK, gaming, DePIN, and other Web3 themes, emphasizing mechanism design, timing, real demand, and founders who learn quickly in crypto-native markets.