Sequoia slashes its crypto fund by 66% after industry collapses: Report

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The $85-billion task superior steadfast launched the Sequoia Crypto Fund successful February 2022.


Venture superior elephantine Sequoia Capital reportedly downsized its cryptocurrency money from $585 cardinal to $200 million, amid a liquidity crunch and a pivot distant toward smaller crypto players.

According to a July 27 Wall Street Journal report, the tech-focused VC steadfast told investors successful March it would trim its Sequoia Crypto Fund — on with its ecosystem money — to amended bespeak changed marketplace conditions.

Sequoia Capital curbed crypto investments by a hefty 65% , opting for a nurturing stance connected startups. Not a volatile marketplace apathy, but strategical cognition, folks! #CryptoInvestments $BTC

— Chain Review (@Chain_Review) July 27, 2023

The cryptocurrency money volition present absorption much connected backing early-stage startups, fixed the caller crypto manufacture turmoil that took distant galore of the opportunities to backmost larger companies.

Another motive down the cuts is to little the superior threshold and frankincense the obstruction to introduction for investors to partake successful Sequoia’s money offerings, according to the sources.

“We made these changes to sharpen our absorption connected seed-stage opportunities and to supply liquidity to our constricted partners,” reportedly said Sequoia successful remarks to the Financial Times. The steadfast added it had returned much than $15 cardinal to investors implicit the past 3 years.

The firm’s cryptocurrency money launched successful February 2022, erstwhile the marketplace headdress of the cryptocurrency marketplace was 39.1% down from its all-time precocious of $3 trillion successful November 2021.

One of the firm’s toughest blows successful caller times was its $214 cardinal concern into the now bankrupt FTX, which the firm aboriginal marked down to $0.

Sequoia Capital’s $214M #FTX involvement marked down to $0 ⚰️

— CryptoSavingExpert ® (@CryptoSavingExp) November 10, 2022

Cointelegraph reached retired to Sequoia Capital for remark but did not person an contiguous response.

Related: Crypto VCs stock lessons connected startup occurrence astatine EthCC

Sequoia’s reported determination is reflective of a broader inclination among task superior firms that are choosing to downsize their cryptocurrency bets.

Venture superior investments fell 29.7% successful June, with $779.32 cardinal raised crossed 62 abstracted deals, according to information from the Cointelegraph Research Venture Capital Database.

Venture superior inflows person fallen 77.7% from June 2023 compared to June 2022.

VC money inflows into the cryptocurrency marketplace implicit the past 12 months. Source: Cointelegraph Research

However not each VC steadfast is reducing its cryptocurrency portfolio.

Polychain Capital and Coinfund precocious raised $200 cardinal and $152 million for respective concern and effect funds earlier this month.

Magazine: The concealed of pitching to antheral VCs: Helping pistillate crypto founders blast off

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