Sequoia cuts back size of crypto fund, WSJ says

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By BitcoinWiki News

Key Takeaways:

– Sequoia Capital has decreased the size of its crypto investment fund from $585 million to $200 million.
– They have also reduced the size of their ecosystem fund from $900 million to $450 million.
– The cuts were made to reflect market conditions and a prolonged downturn in the crypto industry.
– Sequoia Capital plans to focus on supporting young startups with the remaining crypto fund, rather than larger companies.
– The two funds affected by the cuts were announced in 2022 and were intended for investments in “liquid tokens.”
– The company recently experienced a reshuffle in its VC team and parted ways with two crypto investors.
– Sequoia Capital had to write down its investment in the failed crypto exchange FTX to zero.

Venture capital firm Sequoia Capital has reduced the size of its crypto investment fund to $200 million from $585 million. It has also cut back on its ecosystem fund that invests in other venture funds, reducing it to $450 million from $900 million. Sequoia cited market conditions as the reason for the cuts and plans to focus on backing young startups with the pared-down crypto fund. The firm recently let go of two crypto investors as part of a team reshuffle, and it has also written off its investment in failed crypto exchange FTX.

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