American venture capital firm, Sequoia Capital has floated a new fund in which it announced a commitment of $500 million to $600 million to deepen its engagements in the digital currency ecosystem. While not a novice investor to digital currencies, the move by Sequoia Capital is aimed at informing its partners that it can position itself as a more active investor than it has always been.
According to the firm’s update about the new Fund, it said its current partners have asked it to exit the stealth mode it operates from, and that it should get more involved in operating blockchain protocols as demanded. Sequoia Capital said the emergence of the new capital which will operate under the Sequoia Capital Fund is its way of responding.
“Sequoia Crypto Fund complements our broader commitment to crypto. Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves,” the Venture Capital company stated, adding, “We remain committed to working collaboratively with the crypto community, including providing ongoing support for open-source research. We will also continue to partner with crypto teams across every stage of their journey out of our seed, venture, growth, and expansion funds.”
While the modalities for the allocation of the funds are yet to be ascertained, the company said it will not solicit new funds but only rely on existing investments made by its limited partners.
Sequoia Capital Funds’ Robust Portfolio
Sequoia Capital featured prominently in the massive venture funding the digital currency and fintech ecosystem received in the past year. The firm has also already started exerting its influence in the industry this year, notably leading the $450 million funding round blockchain-based Layer 2 protocol Polygon received earlier this year.
The company is also a major investor in Reddit Inc, as well as the FTX Derivatives Exchange. Sequoia Capital has built a reputation for itself in the nascent world of crypto, and the company is committed to bolstering its involvement with the newly established fund. Amongst the ways the firm is speculated to become an active participant is either by staking the coins it acquires from startups as announced.
In all, Sequoia Capital might soon be supporting functional protocols by “providing liquidity, participating in governance and trading through their platforms,” all of which will be unveiled as the funds are put to use.