Sequoia Capital Reduces Its Crypto Fund

Reviews by the Wall Avenue Journal (WSJ) reveal enterprise capital giants Sequoia Capital lowered its crypto fund by over 65%.

Enterprise capital agency, Sequoia Capital, has lower its cryptocurrency fund by over 65% from $585 million to $200 million, the WSJ reports citing individuals conversant in the matter.

Sequoia Capital Downsizes Two Funds

In response to the WSJ, which cites individuals conversant in the matter, the enterprise capital agency lowered the scale of two of its funds, together with its Sequoia Crypto Fund. The Silicon Valley-based tech-focused enterprise capital agency knowledgeable buyers it might scale back its crypto and ecosystem fund.

In response to the agency, the changes replicate a modified market, with the crypto fund now extra targeted on investing in newer startups after the market stoop lowered its probabilities to spend money on bigger initiatives. The VC agency had invested a sizeable $150 million within the now-collapsed FTX alternate.

The WSJ report signifies the Sequoia Crypto Fund has been lowered from $585 million to $200 million.

The WSJ additionally reviews Sequoia’s ecosystem fund was lowered from $900 million to $450 million. The agency’s ecosystem fund, lowered by 50%, invests in different smaller enterprise funds and solo buyers.

An additional report by the Monetary Occasions (FT) states Sequoia returned over “$15 billion to its buyers over the previous three years.” In response to the FT, the agency stated:

“We made these modifications to sharpen our deal with seed-stage alternatives and to supply liquidity to our restricted companions.”

Sequoia first announced its crypto fund in February 2022 and stated it was seeking to elevate round a $500-600 million crypto fund which invests solely within the crypto area.

Sequoia Capital India was additionally the bulk investor in a Polygon funding round which noticed the Ethereum scaling platform elevate a complete of $450 million.

Disclaimer: This text is offered for informational functions solely. It isn’t supplied or supposed for use as authorized, tax, funding, monetary, or different recommendation.

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