1 year ago
In effect to a sizeable displacement successful the startup ecosystem, Sequoia Capital, a renowned task firm, has importantly scaled backmost its cryptocurrency fund.
According to individuals acquainted with the matter, the money has been chopped from $585 cardinal to a leaner $200 million, arsenic reported by the Wall Street Journal (WSJ.)
This important simplification is portion of an extended downsizing strategy that the steadfast is implementing arsenic it grapples with challenges successful the startup industry.
The WSJ noted that Sequoia’s determination to downsize its funds, shared with its investors earlier this year, was driven by a alteration successful marketplace dynamics. The task steadfast aims to accommodate its attack to amended align with the evolving landscape, readying to ore much connected backing early-stage startups.
According to the Financial Times, Sequoia is retrenching successful airy of a steep inversion successful backstage markets, and this determination is besides designed to supply liquidity to its constricted partners.
Sequoia’s simplification is not confined to its cryptocurrency money alone. According to WSJ, the steadfast besides trimmed its ecosystem fund, which invests successful different task funds, from $900 cardinal to $450 million.
The downsizing of its crypto funds comes successful the aftermath of past crypto setbacks. Notably, successful Nov. 2022, the steadfast had to write disconnected its implicit $200 million concern successful FTX, the cryptocurrency exchange, arsenic worthless.
Despite moving owed diligence erstwhile FTX’s gross was astir $1 billion, its illness led to its worth diminishing. However, Sequoia highlighted that its vulnerability to FTX was little than 3% of its Global Growth Fund III, and the nonaccomplishment was mitigated by gains of $7.5 cardinal from the fund.
According to the WSJ, Sequoia has maintained that it mightiness inactive put successful crypto via its different funds.
The station Sequoia Capital scales backmost crypto money by $350M amid manufacture challenges – reports appeared archetypal connected CryptoSlate.
English (US) 