Sequoia Capital Reduces Crypto Fund by Over 65%
The Wall Street Journal reports that venture capital giant Sequoia Capital has downsized its cryptocurrency fund by more than 65%, from $585 million to $200 million. This reduction in size applies to two of its funds, including the Sequoia Crypto Fund.
Key Points:
– Sequoia Capital has cut its cryptocurrency fund by over 65%, bringing it down to $200 million.
– The venture capital firm has also downsized its ecosystem fund from $900 million to $450 million.
– The adjustments reflect a changing market, with the crypto fund now focused on investing in newer startups.
– Sequoia Capital returned over $15 billion to its investors in the past three years.
– The firm made these changes to focus on seed-stage opportunities and provide liquidity to its limited partners.
Sequoia Capital India, a subsidiary of the firm, was a major investor in a funding round for Polygon, which raised $450 million.
Hot Take:
Sequoia Capital’s decision to reduce its crypto fund and focus on smaller startups suggests a shift in the VC firm’s investment strategy. It acknowledges the challenges faced by larger projects in the current market. This move also highlights the importance of adaptability and flexibility in the crypto industry.
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