- The Sequoia Crypto Fund will now focus on supporting early-stage startups.
- The company also reduced the size of another ecosystem fund by 50 percent.
One of the world’s best-known venture capital firms, Sequoia Capital, has reduced the size of two large venture funds, including a cryptocurrency fund (Sequoia Crypto Fund). The Wall Street Journal reports, citing people familiar with the matter.
The size of the cryptocurrency fund dropped from $585 million to $200 million, while the ecosystem fund, which invests in other venture capital funds, shrank from $900 million to $450 million.
The cuts came amid liquidity shortages and a refocus on smaller cryptocurrency players, according to people familiar with the matter. Another reason for the reduction in funds is the intention to lower the capital threshold and barrier to entry for investors.
A statement from Sequoia to the Financial Times says the company made these changes to focus on seed-stage opportunities and provide liquidity for limited partners. It also said in a statement that Sequoia Capital has returned more than $15 billion to investors over the past three years.
According to Cointelegraph Research’s venture capital database, venture capital investment fell 29.7 percent in June, with 62 separate deals raising $779.32 million.
Venture capital inflows into the cryptocurrency market over the past year
Reminder, Sequoia Capital previously announced the layoffs of five key partners, two of whom specialized in cryptocurrency investments.
Sequoia Capital announced the layoffs of five key partners, two of whom specialized in cryptocurrency investments.