Silicon Valley’s tech-oriented venture capital firm Sequoia Capital is launching a new cryptocurrency-oriented fund of at least $500 million. Sequoia Capital through its sub-fund, the Sequoia Crypto Fund, will primarily invest in liquid tokens, crypto tokens traded on third-party exchanges.
“The area in crypto where we have the most opportunity for improvement is really in the liquid stuff. Our founders have asked us for a lot of help there, and we just haven’t been able to deliver in the traditional venture capital model,”
Shaun Maguire, a partner at Sequoia, told Financial Times.
Last year, one-fifth of the firm’s investments were targeted at cryptocurrency companies in the US and Europe. Financial Times also mentioned that Sequoia Capital filed to become a registered investment adviser with the US Securities and Exchange Commission. This allows the venture capital firm to invest larger amounts into cryptocurrency.
On the Flipside
- Sequoia Capital has not yet revealed which tokens the fund will purchase, though it previously invested in crypto-derivatives exchange FTX, crypto platform Fireblocks, decentralized crypto storage network Filecoin, and many others.
- According to Forbes, global venture capital firms had poured $30 billion into crypto startups last year. 2022 is likely to set a new record.