Sequoia Capital, a prominent venture capital firm, has significantly reduced the size of its cryptocurrency fund by more than 65%, bringing it down to $200 million from its initial value of $585 million. This decision reflects the changing market dynamics in the cryptocurrency space, with the fund now focusing more on supporting newer startups due to the recent crypto downturn, which has limited opportunities to invest in larger companies.
In addition to the cryptocurrency fund, Sequoia also cut the size of its ecosystem fund by 50%, reducing it from $900 million to $450 million. The ecosystem fund primarily invests in other venture funds.
Previously, Sequoia made headlines with its $150 million investment in FTX, a crypto exchange, which faced a collapse in November.