Crypto adoption is sweeping across traditional financial institutions. Sequoia Capital has launched a new investment fund focused on crypto tokens, according to a report. The over 50 years old venture capital firm is looking to raise between $500 to $600 million for the fund.
Sequoia Capital is getting involved in all things crypto
American news outlet, Axios, reports that Sequoia Capital is looking to dip its feet completely in crypto. The fund, which is Sequoia’s first sector-specific fund, will invest across the entire crypto ecosystem. This will cut across layer 1, layer 2, centralized finance, payments, gaming, web 3, Non-Fungible Tokens (NFTs), DeFi, as well as consumer and enterprise infrastructure.
This fund will let us manage these tokens differently, from staking to voting rights and having a say on governance, Alfred Lin, a partner at Sequoia said.
The report is coming after Sequoia revealed that it would be changing its investment strategy last year. Lin revealed that last year, over 20% of more than $22 billion Sequoia Capital invested last year were in crypto start-ups.
The company also expects to have the support of its clients. Lin disclosed that over 95% of its limited partners (LPs) agreed to the new crypto-focused fund.
Meanwhile, part of Sequoia’s plans to introduce new investment strategies also includes a $900 million to $950 million Ecosystem sub-fund that lets. As well as a $3.2 billion to $3.5 billion Expansion sub-fund focused on growth-stage companies.
VC investment in crypto at a record high
Venture capital investment in crypto was estimated to have reached over $30 billion last year. The figure, which is more than 7x that of 2020, was plowed into all sectors of the crypto industry.
Andreessen Horowitz, one of Sequoia’s fiercest competitors in venture capital, has led the charge into crypto. New investment firms focused on crypto like Paradigm and KRH Partners have also emerged. So far, the largest crypto fund launched in the industry is Paradigm’s $2.5 billion fund.
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