Sequoia Capital Cuts Crypto Fund by 65%, Investment in Crypto at Lowest Since 2020

  • Venture capital giant Sequoia Capital recently reduced the size of its cryptocurrency fund by over 65%, reducing it from $585 million to $200 million.
  • The venture capital firm also made corresponding cuts to its ecosystem fund, reducing it by half from $900 million to $450 million.
  • Sequoia Capital also reportedly laid off seven employees from its operations team amid downsizing of its funds.

Sequoia Capital Cuts Crypto Fund

Venture capital giant Sequoia Capital has slashed the size of its cryptocurrency fund by over 65%, reducing it from $585 million to $200 million, Wall Street Journal reported citing sources familiar with the matter. The venture capital giant has also made corresponding cuts to its ecosystem fund, reducing it by half from $900 million to $450 million.

FTX Investment Marked to Zero

One notable factor in Sequoia Capital’s investment history is its high-profile $150 million investment in the now collapsed crypto exchange FTX. The venture fund capital had to mark its entire FTX investment to zero.

Layoffs Amid Downsizing

Sequoia Capital has also reportedly laid off seven employees from its operations team amid downsizing of its funds. As per the firm’s chief operating officer Sumaiya Balbale, the job cut affected one-third of the company’s staff which helps in recruitments for startups in its portfolio. Earlier, veteran Jamie Bott exited the venture capital firm who had led the company’s talent team.

Startup Hiring Freeze

During the peak years of 2021 and 2022, Sequoia’s COO revealed , the company’s talent requirements had tripled, as the company doubled its workforce. However, with the onset of a startup hiring freeze, a correction followed, leading to a noticeable decline in inbound requests and hiring needs, Balbale added.

VC Investments Fall In 2023 Sequoia Capital’s decision to slash investment funds reflects a broader trend in