The fund, the first-ever of this kind by Sequoia, will focus on investments in the crypto token space.
Sequioa is also set to actively manage the investment through staking and providing liquidity
Sequoia Capital, among the world's leading venture capital firms, has reportedly set aside $500-600 million in investment in crypto tokens, The Block reported on Thursday.
According to the publication, citing Sequoia Capital partner Shaun Maguire, the new crypto-focused fund will be the VC’s pioneer fund specifically tailored to a given investment segment.
Dubbed “The Sequoia Crypto Fund” the investing vehicle targets liquid tokens and allows Sequoia to be more active in the management of the invested tokens. This includes staking, providing liquidity, and trading, Sequoia Capital partner Shaun Maguire.
Maguire said this fund comes after a major push from the VC’s network of builders on major crypto platforms such as Ethereum (ETH) and Solana (SOL) among other decentralised finance (DeFi) protocols.
Other projects Sequoia is looking at include Terra (LUNA), Avalanche (AVAX), Polkadot (DOT) and Cosmos (ATOM).
Sequoia seeks to have the fund deployed fully in less than a year should a bear market hit the crypto space, with that extended to more than a year if a bullish market ensues. On how much will go into each investment, Maguire said it will vary from $100,000 to $50 million.