Sequoia Capital, one of the oldest American venture capital firms, is reportedly raising $500 to $600 million for its new cryptocurrency-focused investment vehicle. According to the company, the fund will be investing in liquid digital assets, meaning those that are about to be or are already traded.
Key takeaways:
- The Sequoia Crypto Fund will be the first crypto-specific found in the company’s 50-year long history. The California-based Sequoia Capital is one of the more successful investment firms in the world, winning the top VC fund acclaims after scoring a 2x growth surge in 2019.
- Sequoia’s new crypto fund is a part of the bigger Sequoia Capital Fund, formed last October during the company’s product restructuring phase.
- “Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves,” wrote Sequoia partners in Thursday’s announcement post.
- While the new fund represents Sequoia’s first foray into active token management investing, the company has been involved in crypto for years and has worked alongside prominent crypto firms, such as FTX, Fireblocks, and Parallel, in the past.
- With the capital allocated to the new fund, Sequoia will be actively managing tokens by staking them, participating in governance and liquidity providing services, and using other DeFi-specific features.
- Venture capital is flowing into crypto at an increased pace as of late. Last year, Andreessen Horowitz launched a massive, $2.2 billion crypto fund. Not to be undone, crypto exchange FTX launched its own $2 billion VC unit earlier this year, with the intent of advancing the adoption of Web3.
