Sequoia’s Crypto Fund Valuation Falls by 66%
The Sequoia Crypto Fund, which was launched in February of 2022, has reduced the value of its assets by 66%, from $585 million to $200 million — a decision informed by “changing market conditions,” as reported by the Wall Street Journal.
Furthermore, Sequoia Capital halved their ecosystem fund, which provides capital to VCs and business angels, from $900 million to $450 million.
The Fund is now investing more in early-stage startups as a result of the upheavals in the industry, as well as access to more investors being made available.
This comes in the wake of June 2023’s 77.7% year-over-year drop in venture capital inflows, down from $3.5 billion to $780 million.
Additionally, Sequoia wrote off their $214 million investment in FTX, which is amidst bankruptcy proceedings. This was a significant blow to the Fund.
