Sequoia Capital, an American venture capital firm, has successfully launched a new cryptocurrency fund in its continued efforts to bolster the next generation of blockchain-focused startups.
In a February 17 Bloomberg report, Sequoia confirmed allocating up to $600 million towards the new sector-specific fund, funding aiming to bootstrap next-generation blockchain-oriented startups. In that context, it is worth noting that Shaun Maguire, a partner at Sequoia Capital Venture, once described crypto as a mega-trend over the next 20 years, calling it the future of money.
The new crypto funds, which operate under the Sequoia Capital Fund, were part of three new sub-funds Sequoia has simultaneously introduced. The new funding will rely on capital already committed by the firm’s limited partners.
Nonetheless, this is not the first time Sequoia is seeding in cryptocurrency. The Venture Capital firm previously led a successful $450 million funding round for layer-2 scaling solution Polygon. Moreover, the VC firm was behind a $25 million equity round for DeFi wallet DeBank and a $50 million funding initiative for StarkWare.Buy Crypto Now
Sequoia also largely participated in a $1.15billion investment round for Citadel Securities, which expanded its exposure on digital assets. In 2021, the global blockchain funding reached a record high of $25.2 billion, having exploded 713% compared to the previous year 2020, according to CBI Insights.
Many Venture capital firms focused on crypto adoption, finding projects across various sub-sectors, including non-fungible tokens (NFTs), decentralized finance (DeFi), crypto exchanges, and infrastructure services.
Notable venture capital firms have recently shifted their focus on Web3, metaverse, and GameFi projects.