{"id":82325,"date":"2023-07-28T15:16:54","date_gmt":"2023-07-28T12:16:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82325"},"modified":"2025-09-12T04:19:11","modified_gmt":"2025-09-12T01:19:11","slug":"journalists-report-sequoia-trims-crypto-fund-valuation-by-66","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/journalists-report-sequoia-trims-crypto-fund-valuation-by-66\/","title":{"rendered":"Journalists report Sequoia trims crypto fund valuation by 66%."},"content":{"rendered":"

The assets of the Sequoia Crypto Fund, launched in February 2022, were cut by 66% \u2014 from $585 million to $200 million. People close to Sequoia Capital said the write-down reflected the need to reflect changes in market conditions, WSJ<\/a> reports.<\/p>\n

The latter implies a broad downturn in private tech companies and a shortage of liquidity among investors who provide capital to venture firms.<\/p>\n

Sequoia Capital also halved its Ecosystem Fund, which backs small venture vehicles and angel investors \u2014 from $900 million to $450 million.<\/p>\n

According to the publication’s sources, the Sequoia Crypto Fund will now devote more attention to supporting early-stage startups. The management team has taken into account recent industry shocks that have left many unable to back larger companies.<\/p>\n

Another factor was the lowering of the barrier to participation for investors in Sequoia funds.<\/p>\n

The firm launched the Sequoia Crypto Fund in February 2022, when the cryptocurrency market capitalization had fallen by 39.1% from ATH<\/span> of $3 trillion in November 2021.<\/p>\n

One of the most serious blows to the structure recently were its $214 million investments in bankruptcy proceedings<\/a> for FTX, which the company fully wrote off<\/a>.<\/p>\n

According to Cointelegraph Research<\/a>, venture-capital inflows in June 2023 fell by 77.7% year on year \u2014 from $3.5 billion to $780 million.<\/p>\n

\\\"image-482\\\"<\/figure>\n

In July 2023, the crypto-focused firm Polychain Capital raised $200 million<\/a> for its fourth venture fund.<\/p>\n

In the same month, CoinFund received<\/a> investments of $158 million to create a digital-asset-focused structure.<\/p>\n

Earlier, Sequoia Capital led a funding round for the LayerZero omnichain protocol, for $120 million<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The assets of the Sequoia Crypto Fund, launched in February 2022, were cut by 66% \u2014 from $585 million to $200 million.<\/p>\n","protected":false},"author":1,"featured_media":82326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1285,2180,1133],"class_list":["post-82325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-funds","tag-sequoia-capital","tag-venture-investments"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=82325"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82325\/revisions"}],"predecessor-version":[{"id":82327,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82325\/revisions\/82327"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/82326"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=82325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=82325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=82325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}