Sequoia, one of the most prominent venture capital firms in history, has been active in cryptocurrency. It announced the creation of a sub-fund with a $500-$600M limit that will primarily focus on digital assets and liquid tokens.
The Industry’s Best-In Class Goes to Crypto Fund
The Sequoia Crypto Fund, which was recently unveiled, will allow the California-based company to be more active in protocols, better support token only projects, and gain a greater understanding of the ecosystem. This sub-fund is part of the Sequoia Capital Fund.
The official announcement stated that the fund would continue to work collaboratively with the crypto community and offer ongoing support for open-source research.
The fund will support layer 1 protocols, layer 2-add-on systems, decentralized financial (DeFi), central applications, the data layer and payments. It will also support enterprise and consumer infrastructure. Sequoia plans to invest in crypto teams through its seed, venture and growth funds.
Financial Times quoted Shaun Maguire as saying, “Sequoia partner Shaun Maguire was quoted by Financial Times as saying,”
The liquid stuff is the area of crypto that has the greatest potential for improvement. We have not been able deliver the traditional venture capital model as requested by our founders.
Sequoia also created Ecosystem Fund (900 million to $950 million) and Expansion Fund (3.2 billion to $3.5 billion). Both products support cryptocurrency, which is quite interesting. Sequoia Capital Fund will receive the proceeds from these sub-funds.
Infrastructure Upgrade at Sequoia
Sequoia thinks crypto will be a “megatrend” in the next 20-30 years. Maguire stated that the industry is the future money, and continued to say that the company has a long term view of the sector. Maguire also disclosed that almost 20% of his firm’s investment in crypto startups over the past twelve months.
The company has formed partnerships over the years with many well-known faces in the industry. These include Sam Bankman-Fried, Jack Dorsey, Block, Uri Kolodny, Eli Ben-Sasson, Fireblocks’ Michael Shaulov, and Jack Dorsey, all at FTX. These deals will increase with the fund.
Sequoia Capital recently announced that it led a financing round to finance the Ethereum layer 2 scaling solution Polygon. The venture capital firm has become the latest Silicon Valley company that invests in the Web 3 ecosystem.
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