Sequoia Capital launches crypto fund worth up to $600M

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American venture capital firm Sequoia Capital has launched a new cryptocurrency fund as part of its ongoing efforts to bootstrap the next generation of promising crypto-focused startups.

Bloomberg reported Thursday that Sequoia is allocating up to $600 million towards the new sector-specific fund. Shaun Maguire, a partner at Sequoia, described crypto as a “megatrend over the next 20 years” and called it “the future of money.”

The new crypto fund is part of three new sub-funds that were introduced by Sequoia on Thursday. The new funds, which operate under the Sequoia Capital Fund, will rely on capital that’s already committed by the firm’s limited partners.

Sequoia is no stranger to the cryptocurrency market, having financed dozens of projects in the space. As Cointelegraph reported, Sequoia recently led a $450 million funding round for layer-2 scaling solution Polygon. The firm was behind a $25 million equity round for DeFi wallet DeBank and the $50 million raise for StarkWare. Sequoia also participated in a $1.15 billion investment round for Citadel Securities, which is broadening its exposure to digital assets.

Related: VC Roundup: Animoca leads NFT3 raise, Arca launches NFT fund and Alexis Ohanian broadens crypto exposure

Global blockchain funding reached $25.2 billion in 2021, having grown 713% over the previous year, according to data from CBI Insights. Venture capital funding has largely focused on crypto adoption, with firms backing projects across various sub-sectors including nonfungible tokens, decentralized finance, crypto exchanges and infrastructure services. More recently, venture capital has placed greater emphasis on Web3, metaverse and GameFi projects.