Sequoia Capital Designates $500-600 Million to Crypto Fund

Sequoia Capital

Despite persistent regulatory uncertainty and market volatility, Sequoia Capital is creating a cryptocurrency-focused fund worth up to $600 million, the latest hint of venture capital interest for crypto firms.

Sequoia Capital, an American venture capital firm based in Menlo Park, California, is launching a fund dedicated to investing in crypto assets. Sequoia said the new liquid token fund “complements” the firm’s continuing crypto investments in a blog post titled “A Block Step Forward.” Sequoia’s release went on to mention previous collaborations with crypto heavyweights like FTX CEO Sam Bankman-Fried and Michael Shaulov, co-founder of Fireblocks.

Sequoia Capital to Launch a Fund Focused on Liquid Tokens

Blockchains like Ethereum and Solana, as well as “important” decentralized finance (defi) protocols, were also cited by the venture capital company. Sequoia claimed that they learned a lot while investing in these technologies. Last year, venture capital funding for blockchain protocols, crypto assets, and up-and-coming blockchain firms increased dramatically. In 2021, total venture capital (VC) investments will reach $621 billion, a new high.

With $32.8 billion in venture capital investments last year, firms primarily focused on crypto tokens and blockchain technology enterprises comprised 5.28 percent of all VC investments in 2021. While the Sequoia Crypto Fund wants to invest $500 million to $600 million in “liquid tokens and digital assets,” Sequoia also says it will continue to work with crypto startups from around the world.

Sequoia Capital led a $450 million financing round in Polygon in the first week of February 2022. Sequoia Capital is regarded as one of the top 20 blockchain and cryptocurrency venture capital firms. Metastable, Polychain, Binance, Huobi, Polygon, Orchid Labs, and String Labs are among the companies in which the California-based firm has invested.

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