Sequoia Capital, a major US venture capital firm based in California, has announced today that it has launched a cryptocurrency-focused fund that will enable it to focus on investing in crypto tokens and other digital assets. As a result, the venture capital company said that it is raising $500 to $600 million to enable it to drive activities associated with the fund.
According to the report, the Sequoia Crypto Fund will mainly invest in tokens that are already listed on crypto exchanges and those that are yet to be listed, Shaun Maguire, a partner at Sequoia Capital, stated.
Sequoia revealed that it launched a crypto-dedicated fund after several founders asked it to take a more active role in managing tokens. Therefore, instead of just investing in and holding tokens, the firm said that it plans to use the crypto fund to start staking tokens, provide liquidity, participate in governance and trade them. "This new fund gives us the flexibility to engage even more deeply. Our network of builders at Ethereum, Solana, major DeFi protocols and beyond have urged us to do the same," Maguire elaborated.
As part of this crypto investment fund, Sequoia said that it is especially interested in cross-chain interoperability, GameFi projects, as well as blockchain protocols like Terra, Avalanche, NEAR, Polkadot, Cosmos, among others.
The company stated that its crypto fund will have the flexibility to invest in such projects. The check sizes of such investments would range between $100,000 to $50 million per project, Maguire said.
The Sequoia Crypto Fund is the first part (sub-fund) of the Sequoia Capital Fund, which was created last October as part of the company's restructuring. The Sequoia Capital Fund now holds all of the company’s US and European investments, including stakes in publicly-traded companies.
Helping Startups Expand Globally
Established in 1972, Sequoia venture capital firm continues using its flagship product ‘the Sequoia Capital Fund’ to invest in energy, financial, enterprise, healthcare, internet and mobile startups across the world. The company even helps daring founders to build legendary companies and support them to push the boundaries of what is possible.
Last month, Citadel Securities, a major market maker, raised $1.15 billion in a funding round led by Sequoia and Paradigm. Peng Zhao, the CEO at Citadel Securities, said that many companies that have transformed the globe have achieved their highest ambitions with Sequoia as their partner.
Citadel stated that its partnership with Sequoia has put it in a stronger position as the company continues to scale its business, widen into new markets and attract the world’s most talented employees.
