On February 17, the venture capital firm Sequoia Capital announced the launch of a new $500 million to $600 million sub-fund dedicated to “liquid tokens and digital assets.” The company noted during its announcement that the new fund highlights Sequoia’s strategic “commitment to crypto.”
Sequoia Capital launches a fund focusing on digital assets and liquid tokens
Sequoia Capital, an American Venture Capital firm, has launched a fund that will invest exclusively in cryptocurrency assets. In a blog post dubbed “A Block Step Forward,” Sequoia says the new liquid token fund “complements” the firm’s ongoing crypto investing. Sequoia’s announcement further discussed prior partnerships with crypto movers and shakers like FTX CEO Sam Bankman-Fried and Michael Shaulov the co-founder of Fireblocks.
The venture capital firm also mentioned blockchains like Ethereum, Solana, and “major” decentralized finance (defi) protocols. Sequoia said that investing in these technologies has been a rewarding experience and she learned a lot along the journey. “Today, we are doing just that with a new $500–600M sub fund focused primarily on liquid tokens and digital assets,” the blog post published on Thursday notes. Sequoia Capital continued:
Sequoia Crypto Fund adds to our wider commitment to crypto. This fund aims to be more active in protocol development, provide better token-only project support, and teach by doing. Our commitment to the cryptocurrency community remains unchanged, as well as providing support for open-source research.
Last year, venture capital that is geared towards blockchain protocol, crypto assets and new blockchain startups has grown exponentially. The total venture capital (VC), investments for 2021 broke all records with $621 billion. Last year’s venture capital, funds that were primarily focused on crypto tokens and blockchain technology businesses, represented 5.28% of 2021’s aggregate VC investments with $32.8 billion.
While the Sequoia Crypto Fund will deploy $500 million to $600 million toward “liquid tokens and digital assets,” Sequoia says it also plans to continue partnering with crypto teams across the industry. Sequoia Capital India led a $450 million Polygon investment round during the week beginning February 20, 2022. Sequoia has been ranked among the top twenty venture capitalists in cryptocurrency and blockchain. This California-based company invested in Metastable and Polychain.
Sequoia Capital has announced the launch of a $500 million-$600 million sub-fund dedicated exclusively to cryptocurrency. Please comment below to let us know your thoughts on this topic.
Images by CreditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.