The Silicon Valley based VC, Sequoia has slashed its fund size allocated to crypto investments. The firm is retrenching its finance amid sharp reversal in private markets. The report was officially shared by the Wall Street Journal.
“We made these changes to sharpen our focus on seed-stage opportunities and to provide liquidity to our limited partners,” says the VC Firm adding, “Sequoia has returned more than $15 billion to its investors.”
The firm has cut down its crypto fund size from $585M to $200M, more than 60% decrease. It has also halved the ecosystem fund to half from $900M to $450M, which backs other smaller venture funds.
Sequoia informed its investors regarding the matter in March, saying the move is made amid the downturn for private tech companies and liquidity crunch from some of its investor partners.
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Earlier in June, the firm announced it would split its Chinese entity due to growing tension between the US and China. The senior partner Michael Moritz stepped down earlier this month after 38 years in the firm.
Sequoia’s highest returning investment was in FTX exchange. However, FTX collapsed last year and it has written down $214M investment to zero. It has investments in leading crypto companies including Polygon, Filecoin, LayerZero, Fireblocks, Conflux, and others.
