Sequoia Capital, a leading venture capital firm, announced its first crypto-focused fund in February 2022. This article explores Sequoia Capital’s blockchain and cryptocurrency investments, including those made by its sister funds—Sequoia Capital China and Sequoia Capital India—alongside recent developments.
Introduction to Sequoia Capital
Sequoia Capital is a globally recognized venture capital firm investing in seed-, early-, and growth-stage technology companies across the US, Europe, Southeast Asia, and China. Its portfolio spans clean tech, crypto, healthcare, financial services, robotics, and mobile sectors.
The firm entered the crypto space in 2014 with an investment in String Labs. More recently, in January 2022, Sequoia participated in Fireblocks’ $500M Series E round, a platform specializing in digital asset custody and settlement.
Sequoia Capital’s Crypto Fund Initiatives
Despite market volatility, Sequoia Capital announced plans in February 2022 to raise $500–600M for its inaugural crypto-focused fund—the Sequoia Crypto Fund. This sub-fund will prioritize liquid tokens and digital assets.
Expanding its Web3 footprint:
- Sequoia Capital India launched $2.85B across two new funds in June 2022, targeting India and Southeast Asia’s Web3 ecosystem.
- Sequoia Capital China is reportedly raising $9B for four funds, with a focus on fintech and crypto startups in China.
Key Blockchain and Crypto Investments
Sequoia Capital and its subsidiaries have actively invested in blockchain and crypto ventures:
Sequoia Capital
- 24 deals to date, including 8 in 2022.
- Notable 2021 investments: FTX, Fireblocks, and Iron Fish.
Sequoia Capital China
- 15 deals since 2017, with 5 in 2022.
- Largest 2022 round: Amber Group’s $200M Series B.
Sequoia Capital India
- 23 deals, including 11 in 2022.
- Highlight: $100M Series A for FanCraze, a cricket NFT platform.
Investment Trends (2017–2022)
Geographic and Stage Focus
| Subsidiary | Top Investment Stages | Key Regions |
|---------------------|-----------------------|---------------------------|
| Sequoia Capital | Series A (42%) | US (75%), Israel (13%) |
| Sequoia China | Seed/Series A (33% each)| Hong Kong, China (27% each)|
| Sequoia India | Seed VC (74%) | Singapore (35%), US (30%) |
Top Use Cases
Blockchain Infrastructure:
- Investments in StarkWare (ZK-proof tech) and Iron Fish (Layer-1 blockchain).
Decentralized Exchanges (DEXs) & DeFi:
- Backing platforms enhancing scalability and privacy.
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FAQs
Q: What is Sequoia Capital’s focus in crypto?
A: Sequoia prioritizes blockchain infrastructure, DeFi, and liquid tokens, with dedicated funds for digital assets.
Q: How active is Sequoia Capital India in crypto?
A: Extremely active—11 deals in 2022 alone, including FanCraze’s $100M Series A.
Q: Which regions dominate Sequoia China’s crypto investments?
A: Hong Kong and China, each accounting for 27% of deals.
Conclusion
Sequoia Capital’s strategic investments underscore its commitment to blockchain innovation. With dedicated funds and global subsidiaries, the firm is poised to influence the next wave of crypto advancements.