Sequoia Capital Designates $500-600 Million to Crypto Fund Focused on Liquid Digital Assets
On February 17, the enterprise capital agency Sequoia Capital introduced the launch of a brand new $500 million to $600 million sub-fund devoted to “liquid tokens and digital property.” The firm famous throughout its announcement that the brand new fund highlights Sequoia’s strategic “dedication to crypto.”
Venture Firm Sequoia Capital to Launch a Fund Focused on Liquid Tokens and Digital Assets
The American enterprise capital agency headquartered in Menlo Park, California, Sequoia Capital is beginning a fund that can be centered on investing in crypto property. In a blog post dubbed “A Block Step Forward,” Sequoia says the brand new liquid token fund “enhances” the agency’s ongoing crypto investing. Sequoia’s announcement additional mentioned prior partnerships with crypto movers and shakers like FTX CEO Sam Bankman-Fried and Michael Shaulov the co-founder of Fireblocks.
The enterprise capital agency additionally talked about blockchains like Ethereum, Solana, and “main” decentralized finance (defi) protocols. While investing in these applied sciences, Sequoia talked about studying an excellent deal alongside the way in which. “Today, we’re doing simply that with a brand new $500–600M sub fund centered totally on liquid tokens and digital property,” the weblog publish printed on Thursday notes. Sequoia Capital continued:
Sequoia Crypto Fund enhances our broader dedication to crypto. Our aim with this fund is to take part extra actively in protocols, higher assist token-only initiatives, and study by doing ourselves. We stay dedicated to working collaboratively with the crypto neighborhood, together with offering ongoing assist for open-source analysis.
Venture capital geared toward blockchain protocols, crypto property, and up-and-coming blockchain startups grew exponentially final 12 months. In reality, total enterprise capital (VC) investments in 2021 broke data at $621 billion. Last 12 months’s enterprise capital, funds that had been primarily centered on crypto tokens and blockchain know-how companies, represented 5.28% of 2021’s combination VC investments with $32.8 billion.
While the Sequoia Crypto Fund will deploy $500 million to $600 million towards “liquid tokens and digital property,” Sequoia says it additionally plans to proceed partnering with crypto groups throughout the trade. During the primary week of February 2022, Sequoia Capital India led the $450 million investment spherical in Polygon. Sequoia is taken into account one of many 20 top venture investors in blockchain and crypto. The California firm has investments in Metastable, Polychain, Binance, Huobi, Polygon, Orchid Labs, and String Labs.
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