Sequoia Capital slashes size of its cryptocurrency vehicle

Sequoia Capital reduced its crypto funds from $585million to $200m

Venture capital firm Sequoia Capital has slashed the size of its cryptocurrency vehicle by more than half despite only raising it last year.

The announcement comes as the Silicon Valley-based firm reacts to a sharp reversal in private markets. 

Sequoia Capital reduced its crypto funds from $585 million to $200m.

A spokesperson said: “We made these changes to sharpen our focus on seed-stage opportunities and to provide liquidity to our limited partners.”

The firm revealed it returned in excess of $15 billion to investors in the last three years. However, it has been a year of major changes for Sequoia. 

Already this year it was announced partner Michael Moritz would step down after nearly four decades at the company. It also split its highly successful Chinese entity due to ‘growing tensions’ between the US and China.

“Venture investors are just a little more cautious in general,” said Conor Moore, a partner in KPMG’s venture capital practice. 

“There’s still money there to be invested but the pace has slowed down because exits have all but stopped,” he added.

The crypto world has had it tough of late and the move by Sequoia Capital will come as no surprise to many in the industry. 

According to Pitchbook, Investment into cryptocurrencies and projects fell 80 percent between the first quarter of 2022 and the first quarter of 2023.

The fall of FTX certainly hasn’t helped confidence. 

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.