Final October, Sequoia Capital introduced intentions to deconstruct the standard enterprise capital mannequin by forming a single fund to deal with all of its U.S. and European belongings (together with publicly-traded shares). Now it’s setting out its subsequent steps, together with a $600 million fund centered on liquid crypto investments—the most recent trace of VC curiosity in crypto companies amid persistent regulatory uncertainty and market volatility. Sequoia’s determination to kind a separate crypto fund is a departure from conference, given the 50-year-old enterprise had by no means performed so earlier than, though it was extensively predicted.

Sequoia now invests in a restricted set of companies via the Sequoia Fund, an open-ended liquid portfolio of public holdings. Following that, the fund distributes capital to a succession of closed-end sub-funds. A company official additionally introduced a $900 million to $950 million Ecosystem sub-fund, which permits portfolio firm house owners to spend money on associated corporations, and a $3.2 billion to $3.5 billion Enlargement sub-fund, which focuses on growth-stage enterprises. The Sequoia Crypto Fund will primarily spend money on digital belongings and liquid tokens.

Layer 1 protocols, layer two add-on methods, the information layer, decentralized finance (DeFi), centralized apps, funds, playing, Net 3, non-fungible tokens (NFT), and shopper and company infrastructure are all areas the place the fund is investing. Sequoia mentioned the crypto fund could be one in all three new sub-funds beneath the Sequoia Capital Fund umbrella when it introduced it on Thursday. Fairly than elevating more money, the brand new funds will make use of assets beforehand pledged by Sequoia’s present restricted companions. Sequoia’s restricted companions, which embody college endowments and pension funds, have expressed approval for the revisions, with 95 p.c of qualifying balances being rolled into the agency’s new construction. These restricted companions can now select which funds they want to make investments their cash in.