By
Bhushan Akolkar
November 3rd, 2023
Sequoia recently unveiled three new sub-funds under the Sequoia Capital Fund. The company stated that the newly-introduced funds would rely on capital committed by its limited partners.
VC firm Sequoia Capital has set up a new fund worth up to $600 million, as it plans to invest in crypto startups. The VC firm plans to invest the money in liquid tokens and crypto-assets. Sequoia Capital is confident in the evolution of crypto and its continued growth. According to a partner at the VC firm, Shaun Maguire, cryptocurrencies would become a “megatrend over the next 20 years.” In addition, Maguire referred to digital assets as “the future of money.”
Sequoia Capital Unveils Sequoia Capital Fund
Sequoia recently unveiled three new sub-funds under the Sequoia Capital Fund. The company stated that the newly-introduced funds would rely on capital committed by its limited partners. Explaining the new fund, Sequoia Capital wrote on its website:
“Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves. We remain committed to working collaboratively with the crypto community, including providing ongoing support for open-source research.”
In addition, the firm said it will further its partnerships with crypto teams through every stage of its journey. Sequoia plans to support its seed, venture, growth, and expansion funds. Before announcing its latest fund, Sequoia Capital has financed several projects in the crypto space. Earlier this month, the firm led a $450 million funding round for layer-2 scaling solution Polygon. Polygon said it would use the fund to expand its scaling solutions with participation from more venture capital funds. Sequoia also backed DeFi wallet DeBank in a $25 million round and supported StarkWare in a $50 million financing. In January, Citadel Securities revealed a combined $1.15 billion investment from Sequoia Capital and Paradigm.
Sequoia’s Partnerships
Sequoia said it has partnered with “ever-growing” founders in the crypto industry. Some of which include FTX CEO Sam Bankman-Fried and Block Inc. CEO Jack Dorsey, who is also the former CEO at Twitter (NYSE: TWTR). Additionally, Sequoia has collaborated with Michael Shaulov at Fireblocks, Uri Kolodny and Eli Ben Sasson at StarkWare, Ming Wu at Strips, and many other prominent names in the crypto space.
Speaking further, the VC firm said it had been propelled to consider managing its tokens after years of investing in equity and tokens.
“While we’ve invested in both equity and tokens over the last five years, many have asked that we take a more active role in managing our tokens, including staking them, providing liquidity, participating in governance and trading through their platforms. Our network of builders at Ethereum, Solana, major DeFi protocols and beyond have urged us to do the same,” said the company.