<div class="cryptonews"> 
 <p class="is-style-lead">VC firm Sequoia Capital has reportedly downsized its <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> fund from $585 million to $200 million amid a liquidity crunch and focus on smaller <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> players.</p> 
 <p>A report by the Wall Street Journal on July 27 says the tech-focused VC firm Sequoia Capital will scale back its <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> fund. The move was driven by the need to align with the evolving market conditions in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency industry.</p> 
 <p>One of the primary motivations behind the fund reduction is to lower the capital threshold, making it easier for investors to participate in Sequoia’s fund offerings.</p> 
 <p>“We made these changes to sharpen our focus on seed-stage opportunities and to provide liquidity to our limited partners,” stated Sequoia in a released statement. Over the past three years, the company has returned more than $15 billion to its investors, highlighting its commitment to delivering results.</p> 
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 <p>The venture capital firm introduced its cryptocurrency fund in February 2022, when the market capitalization of cryptocurrencies was 39.1% lower than its peak at $3 trillion in November 2021.</p> 
 <p>Unfortunately, Sequoia faced setbacks with its $214 million investment in FTX, the cryptocurrency exchange that collapsed in December last year. This led to a high-profile incident that necessitated a rare apology from the firm to its investors.</p> 
 <h2 class="wp-block-heading" id="crypto-vc-investment-experiences-70-drop-in-one-year">Crypto VC investment experiences 70% drop in one year</h2> 
 <p>Sequoia’s reported decision mirrors a wider trend in the venture capital industry, where firms are cutting back on their <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency investments.</p> 
 <p>Data released by RootData reveals a significant decline of over 70% in venture capital investments in <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency companies over the past year.</p> 
 <figure class="wp-block-image size-full"> 
  <img decoding="async" loading="lazy" width="1136" height="539" src="https://cdn.thebittimes.com/images/2023/07/28/8c49bfa0a206d52b6eb0f61049a55da0.webp" alt="Sequoia Capital cuts its crypto fund by 65% - 1" class="wp-image-14181568"> 
  <figcaption class="wp-element-caption">
    Crypto fundraising trends | Source: RootData 
  </figcaption> 
 </figure> 
 <p>In June 2022, the digital asset sector attracted an impressive $1.81 billion in funding through 149 funding rounds. However, in June of the current year, only 88 projects managed to secure a total of $507 million, making it the least funded month to date.</p> 
 <p>Despite the overall trend of reduced <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency holdings among venture capital firms, some companies like Polychain Capital and Coinfund have recently raised $200 million and $152 million for their investment and seed funds, showing that not all are shying away from the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> space.</p> 
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> VCs poured investments into DeFi despite US crackdown 
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Sequoia Capital cuts its crypto fund by 65%

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