Silicon Valley’s tech-oriented venture capital firm Sequoia Capital launches a new cryptocurrency-oriented fund of at least $500 million. Sequoia Capital through its sub-fund, the Sequoia Crypto Fund, will primarily invest in liquid tokens – crypto tokens traded on third-party exchanges.
“The area in crypto where we have the most opportunity for improvement is really in the liquid stuff. Our founders have asked us for a lot of help there, and we just haven’t been able to deliver in the traditional venture capital model,”Shaun Maguire, a partner at Sequoia, told Financial Times.
Last year, one-fifth of the firm’s investments were targeted at cryptocurrency companies in the US and Europe. Financial Times also mentioned that Sequoia Capital filed to become a registered investment adviser with the US Securities and Exchange Commission. This allows the venture capital firm to invest larger amounts into cryptocurrency.
On the Flipside
Sequoia Capital has not yet revealed which tokens the fund will purchase, though it previously invested in crypto-derivatives exchange FTX, crypto platform Fireblocks, decentralized crypto storage network Filecoin, and many others. According to Forbes, global venture capital firms had poured $30 billion into the crypto startups last year. 2022 is likely to set a new record. EMAIL NEWSLETTERJoin to get the flipside of crypto
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