Major US-based VC firm Sequoia Capital announced Thursday that it has launched a new cryptocurrency fund focused on expanding its investment in liquid tokens and digital assets. For this part, the company is looking to raise funds between $500-$600 million.
“Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves. We remain committed to working collaboratively with the crypto community, including providing ongoing support for open-source research,” the firm said while announcing the sub-fund.
Sequoia, which has mainly invested in tokens and equities, seeks to better manage its tokens via staking, providing liquidity, participating in governance, and trading through its platforms. In addition to this fund, the company will continue to invest in crypto startups via its seed, venture, growth, and expansion funds.
The newest fund is one of the three sub-funds introduced by the firm under the Sequoia Capital Fund. Sequoia Capital announced in October last year that it has shifted away from the traditional VC structure to form The Sequoia Capital Fund, an open-ended liquid portfolio.
The firm’s limited partners will invest in the Sequoia Capital Fund, which will further allot capital into sub-funds, such as the Sequoia Crypto Fund, for venture investments. Along with this, the company has also become a registered investment advisor.
Sequoia Capital is one of the major investors in the crypto space since 2015. Crypto companies under its portfolio include FTX, Fireblocks, StarkWare, Filecoin, and others. Its Indian arm recently led a $450 million funding round for Polygon, an Ethereum scaling solution provider.