Sequoia Capital launches $500-600 million crypto fund focused on investing in tokens

This article comes fromThe Block, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

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Summary:

- The VC will also actively manage tokens, from staking to providing liquidity to participating in governance.

Sequoia Capital, one of the world's oldest and most successful venture capital firms, is launching a new fund focused on cryptocurrencies, its first industry-specific fund since its founding in 1972.

Sequoia Capital partner Shaun Maguire said in an interview with The Block that Sequoia Crypto Fund (Sequoia Encryption Fund) will mainly invest in "liquid tokens (liquid tokens)"-that is, those that have been listed on encrypted exchanges and have not yet been launched. tokens.

In addition to the crypto sub-funds, Sequoia will continue to invest in crypto startups through its primary seed, venture, growth and development funds, which have combined commitments of more than $7.5 billion.

“Day One for Crypto”

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Sequoia Capital is becoming more active

Since 2015, Sequoia has been investing in stocks and tokens trading in cryptocurrencies. Last year, 20 percent of the agency’s new investments in the U.S. and Europe were in cryptocurrencies. Its portfolio companies include FTX, Fireblocks, StarkWare, and Filecoin. When asked why a crypto-focused fund is being launched now, Maguire said many founders are increasingly urging Sequoia to take a more active role in managing its tokens. "This new fund gives us the flexibility to engage more deeply," he said.

This means that Sequoia Capital will no longer just invest and hold tokens, but will start staking them, providing liquidity, participating in governance and trading. “Our network of builders in Ethereum, Solana, major DeFi protocols, and more urged us to do so,” the agency said.

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As a venture capital firm, Sequoia Capital believes that cryptocurrency is not just an industry. In the long run, this is a fundamental shift that will affect all industries.

Michelle Bailhe, another partner of Sequoia Capital who focuses on encryption business, said in an interview with The Block, "This is Day One for the encryption industry", which means that the encryption business is still in its infancy, and its industry scale will only be 2.5% in the future. will get bigger and bigger.

Maguire agrees. "We're at the absolute beginning. Cryptocurrencies will be the biggest trend in the next 20 to 30 years," he said.