Sequoia Capital aims to raise up to $600 million for new crypto fund

Sequoia Capital is looking to raise between $500 million and $600 million for its first sub-fund focused on liquid tokens and cryptocurrencies. The new structure would allow the venture capital firm to take a more active approach to managing its investments.

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— Sequoia Capital (@sequoia) February 17, 2022

“Although over the past five years we have invested in both equities and tokens, many have asked us to play a more active role in managing our tokens, including staking, liquidity provisioning, and participation in governance and trading through their platforms. Our network of developers across Ethereum, Solana, major DeFi protocols and beyond urged us to do the same,” the statement said.

Sequoia Crypto Fund is one of the first sub-funds launched after a major restructuring announced in October 2021. The company now channels all investments through the open Sequoia Fund.

The latter is an open-ended, liquid portfolio of public holdings. It is this structure that allocates capital across the sub-funds.

In an interview with CoinDesk, the firm’s partner Michele Bailhe explained that Sequoia Crypto Fund invests “across the stack,” including Layer 1 networks, Layer 2 solutions, DeFi, centralized applications, payments, Web 3.0 gaming, NFT, data layer, as well as consumer and enterprise infrastructure.

In December 2021, Sequoia Capital led the round of funding for the smart-contract auditor CertiK for $80 million.

In February 2022, the company backed the Polygon project team in a round of $450 million.