Sequoia Capital reduces the size of its crypto-funds

American venture capital giant Sequoia decreased by 60% the size of his finvestment funds focused on crypto and initially equipped with 585 million dollars.

Sequoia Capital is slowing down on crypto and earlier this year reduced the size of its crypto-funds from 60% to 200 million dollars compared with $585 million in its early days, reported the Wall Street Journal. The change comes against a backdrop of ” startup crisis “according to the daily.

Last year, the Menlo Park-based VC announced the launch of the Sequoia Crypto Fund to support L1s, L2s, DeFi projects and blockchain infrastructure.

We have made these changes to focus more on early-stage opportunities and to provide liquidity to our limited partners,” a spokesperson for the firm informed.

Sequoia Capitalwhich manages a total of more than $80 billion and directs a quarter of its investments into the crypto in 2021, has also reduced the size of its fund ” ecosystem “which supports smaller funds, from half to $450 million.

In 2023, Sequoia also strongly cut its workforce and lost one of its main partners, Michael Moritz. The company was also forced to separate its American and European activities from its operations in China.

Among its latest investments in crypto include blockchain interoperability protocol LayerZero, which raised $120 million in April at a valuation of $3 billion. Note that Sequoia had invested in bankrupt crypto exchange FTX at the end of 2021.

The venture capital amount injected into the crypto industry has drastically decreased last year, and the decline has intensified this year.