Sequoia Capital Designates $500-600 Million to Crypto Fund Focused on Liquid Digital Assets

Sequoia Capital, an American venture capital firm, is launching a fund to invest in crypto assets. Sequoia claims that the liquid token fund will ‘complement’ its ongoing crypto investments in a blog. Sequoia also discussed previous partnerships with crypto movers, shakers and leaders like Sam Bankman-Fried, CEO of FTX, and Michael Shaulov (co-founder of Fireblocks).

Venture capital firm Sequoia also mentioned blockchains such as Solana and Ethereum. Sequoia said that investing in these technologies has been a rewarding experience and that she learned a lot along the way. “Today, we’re doing exactly that with a new sub fund of $500-600M focused primarily on digital assets and liquid tokens,” the blog post on Thursday noted. Sequoia Capital continued:

Sequoia Crypto Fund is an extension of our larger commitment to crypto. This fund aims to be more active in protocols and better support token-only project. We also want to learn from doing. We are committed to continuing our collaboration with the crypto community and providing support for open-source research.

Last year, venture capital that is geared towards blockchain protocols, crypto assets and up-and coming blockchain startups has grown exponentially. The total $621 million in venture capital investments in 2021 was a record. Venture capital funds, which were primarily focused upon crypto tokens or blockchain technology businesses, accounted for 5.28% of total VC investments in 2021 with $32.8 million.

Sequoia Crypto Fund will invest $500 million to $600 millions in ‘liquid tokens’ and digital assets. Sequoia however says that it plans to continue to partner with other crypto teams. Sequoia Capital India was the leader of the $450 million round in Polygon’s investment round. Sequoia is regarded as one of the top 20 venture investors in crypto and blockchain. The California-based company invests in Metastable and Polychain.