Sequoia Capital Slashes Crypto Fund as It Downsizes Amid Startup Crunch

Sequoia Capital pared back the size of two major venture funds, including its cryptocurrency fund, as part of a dramatic downsizing the storied venture firm is undertaking amid a broad startup downturn. From a report: Sequoia cut the size of its cryptocurrency fund to $200 million from $585 million, according to people familiar with the matter. It also slashed the size of its so-called ecosystem fund, which invests in other venture funds, to $450 million from $900 million, the people said. Sequoia told fund investors in March it made the decision to reduce the funds to better reflect the changed market. The cryptocurrency fund, for example, will focus more on backing young startups after an industry crash wiped out opportunities to back larger companies.

By paring back the fund sizes, Sequoia is lowering the amount of committed capital required from investors, known as limited partners, who are already seeing lower returns from venture funds and are bracing for further markdowns. The changes show the difficult cuts venture firms are making during one of the roughest years in recent memory for the startup industry. They are trying to undo the breakneck expansion and liberal spending that characterized a historic startup boom, which no longer makes sense as deal-making slows and funds struggle to raise more cash.

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[litewoheat]

Well if they can give (what was it?) $800 Million (I think) to a company with, sit down for this... No CFO and No Board of Directors (FTX) maaayyybe they really need to reflect on the people doing their crypto investing and retrench.

Most of the innovation in tech lately...

[iMadeGhostzilla]

... seems to have been in the field of getting to an "exit" as soon as possible.

Sequoia Capital

[kripto.istanbul]

Sequoia Capital is making some big changes. They're cutting down the size of their crypto and ecosystem funds. It's a tough market out there, and it seems like they're adjusting their strategy to keep up. They're planning to focus more on supporting new startups in the crypto space. It's a challenging time, but adapting to the market is key. If you're interested in crypto, check out kripto.istanbul [kripto.istanbul]. It's a good resource for news and info on cryptocurrencies.