Sequoia slashes its crypto fund by 66% after industry collapses: Report

Cointelegraph connected to Sequoia Capital for comment however did not get an instant response.Related: Crypto VCs share lessons on start-up success at EthCC Sequoias reported relocation is reflective of a broader pattern amongst equity capital firms that are choosing to downsize their cryptocurrency bets. Endeavor capital investments fell 29.7% in June, with $779.32 million raised across 62 different deals, according to information from the Cointelegraph Research Venture Capital Database.Venture capital inflows have fallen 77.7% from June 2023 compared to June 2022. VC fund inflows into the cryptocurrency market over the last 12 months. Source: Cointelegraph ResearchHowever not every VC firm is decreasing its cryptocurrency portfolio.Polychain Capital and Coinfund just recently raised $200 million and $152 million for respective financial investment and seed funds previously this month.Magazine: The secret of pitching to male VCs: Helping female crypto founders blast off

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Endeavor capital giant Sequoia Capital supposedly downsized its cryptocurrency fund from $585 million to $200 million, amid a liquidity crunch and a pivot away toward smaller sized crypto players.According to a July 27 Wall Street Journal report, the tech-focused VC firm informed investors in March it would lower its Sequoia Crypto Fund– along with its community fund– to better reflect changed market conditions. Sequoia Capital suppressed crypto financial investments by a substantial 65%, deciding for a nurturing stance on start-ups.

The cryptocurrency fund will now focus more on backing early-stage start-ups, provided the recent crypto market turmoil that took away numerous of the chances to back larger companies.Another intention behind the cuts is to lower the capital limit and hence the barrier to entry for investors to take part in Sequoias fund offerings, according to the sources. The companys cryptocurrency fund released in February 2022, when the market cap of the cryptocurrency market was 39.1% down from its all-time high of $3 trillion in November 2021. Sequoia Capitals $214M #FTX stake marked down to $0 ⚰ pic.twitter.com/RHQJaRq1dL— CryptoSavingExpert ® (@CryptoSavingExp) November 10, 2022