San Francisco, July 29 Leading VC firm Sequoia Capital has massively cut its crypto fund, more than 65 per cent to now about $200 million, amid the funding winter.
Sequoia Capital has downsized its two major venture funds, including the crypto fund (from $585 million to $200 million), reports the Wall Street Journal.
The move came amid several crypto exchanges and platforms announcing bankruptcy in recent months amid tightening regulations.
Sequoia is now reportedly looking to invest in younger startups.
"We made these changes to sharpen our focus on seed-stage opportunities and to provide liquidity to our limited partners," a company spokesperson was quoted as saying.
"The crypto fund will primarily focus on new company formation, with the opportunity to supplement these investments from our seed, venture, growth, and expansion funds as the companies mature," the spokesperson added.
"
Sequoia Capital has pared back the size of two major venture funds "as part of a dramatic downsizing the storied venture firm is undertaking amid a broad startup downturn".
The crypto and blockchain sector witnessed an investment of $2.32 billion in the second quarter (Q2) this year, marking a new cycle low and the lowest since Q4 2020, continuing a downtrend that began after a peak of $13 billion in Q1 2022.
According to the crypto investment firm Galaxy Digital, crypto and blockchain startups raised less money across the last three quarters combined than they did in Q2 of 2022.
In Q2 this year, 10 new crypto VC (venture capital) funds raised only $720 million, the lowest amount since Q3 2020, at the start of the Covid-19 pandemic.
--IANS
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor