Following a record year for crypto financing agreements, famous venture capital company Sequoia Cash announced Thursday the formation of a crypto-focused fund with $500 million to $600 million in capital, becoming the latest Silicon Valley behemoth to invest in the expanding cryptocurrency field.
The Sequoia Crypto Fund will invest largely in cryptocurrencies sold on third-party exchanges, acting as a subfund of the firm’s flagship Sequoia Capital Fund, which has already invested in cryptocurrency firms such as derivatives exchange FTX Trading and custodial platform Fireblocks.
Though the Menlo Park, California-based firm did not reveal the tokens it will purchase with its new fund, it has already purchased about ten cryptocurrencies, including bitcoin, ether, and two tokens launched by cryptocurrency startups in its portfolio, social media-focused Deso and storage network Filecoin.
Sequoia Partner Shaun Maguire told the Financial Times on Tuesday that the fund would make token investments with a “20-year lens” and would avoid trading unless “extraordinary circumstances” arose.
Sequoia did not specify how much the fund’s investments will be; previous investments have varied from $100,000 to $300 million.
According to PitchBook, the new fund follows a record year for venture capital investment in cryptocurrency businesses, with firms investing $30 billion into the market last year, almost seven times the level one year earlier.
