Sequoia Capital has cut back the size of its crypto investment fund to $200 million from $585 million, the Wall Street Journal reported on Thursday, citing people familiar.
The venture capital firm also cut back an ecosystem fund that invests in other venture funds to $450 million from $900 million, according to the report. Sequoia told investors about the cuts in March, saying they were being made to reflect market conditions that have been typified by a prolonged downturn.
The company plans on focusing on backing young startups with the pared down crypto fund as opposed to larger companies that have faced challenges given current conditions, according to the report.
Sequoia Capital reshuffle
The two funds affected by the cuts were first announced in 2022. Its first-ever crypto-focused fund had planned to set aside up to $600 million for investments in "liquid tokens."
The firm recently parted ways with two crypto investors amid a VC team reshuffle, Bloomberg News reported earlier this month. Last year, it was forced to write down its investment in the failed crypto exchange FTX to zero.
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