Sequoia Capital is about to launch a $ 500 million cryptocurrency investment fund

Sequoia Capital says it is about to launch a separate fund for the cryptocurrency marketplace, well worth in excess of half a billion bucks.

Sequoia Capital, one particular of Silicon Valley’s oldest and most effective-recognized venture capital money, stated on Feb.17 that it is getting ready to announce a separate investment fund for the cryptocurrency sector. It will also be the very first sector-unique investment fund made by Sequoia considering that its founding in 1972.

The Sequoia Crypto Fund will generally invest in “liquid tokens,” the phrase applied by the fund to refer to tasks that challenge tokens that have been listed or are waiting to be listed, in accordance to manager Shaun Maguire’s statement.

When asked why he had to build his personal cryptocurrency investment fund, Mr. Maguire uncovered that the fund’s founders desired Sequoia to be far more proactive with the crypto tokens they personal. This implies that, as a substitute of getting and holding tokens, Sequoia may perhaps in the close to long term participate in DeFi routines this kind of as staking, lending, liquidity provision, undertaking governance voting and token trading.

As for the unique undertaking, the anticipated investment fund, Sequoia stated it is closely monitoring function on emerging tasks, which include Terra, Avalanche, Close to, Polkadot and Cosmos, but the fund’s partners are even now uncertain whether or not which blockchain can replicate the degree of accomplishment accomplished by Solana in 2021?

After remaining picked for investment, each and every undertaking will be allotted by Sequoia from USD one hundred,000 to USD 50 million, based on the nature of the agreement. The dimension of the crypto fund that Sequioa is about to set up is in between $ 500-600 million, in the portfolio of Sequoia Capital Fund, an investment fund made by Sequoia immediately after restructuring its portfolio in October 2021.

Mr. Maguire extra that the fund intends to use the complete volume inside of one 12 months if the cryptocurrency marketplace enters a bearish trend, but if it stays in an uptrend, it will allot far more than one.five USD.

Additionally, Sequoia Capital Fund will carry on to invest in cryptocurrency startups with $ seven.five billion in assets below management. In 2021 alone, twenty% of Sequoia’s investments are in the cryptocurrency sector, with massive tasks this kind of as FTX, Fireblocks or Filecoin.

In February, the cryptocurrency marketplace noticed various significant fundraising bargains, which include Dune Analytics ($ 69 million), Qredo ($ 80 million), Aleo ($ 200 million), Alchemy ($ 200 million) and Polygon ($ 200 million). 450 million), with the participation of Sequoia Branch of India’s capital.

The cryptocurrency marketplace in January 2022 also noticed lots of record-worth investment bargains, as reported by Coinlive.

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