A record $25.2 billion was spent on blockchain and cryptocurrency projects in 2021, the most on record.
As part of its efforts to help the next generation of crypto-focused businesses get off the ground, Sequoia Capital has launched a new cryptocurrency fund.
Bloomberg said Thursday that Sequoia will spend up to $600 million on a new fund for a single industry. It’s called “the future of money” by Shaun Maguire, who works at Sequoia. He called crypto a “megatrend” for 20 years, and he said it was “the next big thing in money.”
One of three new sub-funds that Sequoia launched on Thursday is a new crypto fund, and it’s one of three new funds. The new funds, which work under the Sequoia Capital Fund, will get money from the firm’s investors.
There have been many projects in the cryptocurrency market that Sequoia has helped fund, and they haven’t been shy about it. Sequoia recently led a $450 million funding round for Polygon, a layer-2 scaling tool. An equity round for the debit-card-like “DeBank” and a $50 million round for “StarkWare” were both done by this company. Besides investing in Citadel Securities, Sequoia also took part in a $1.15 billion investment round for the company. Citadel is expanding its digital asset portfolio.
Venture capital fell in love with the blockchain in 2021, with a new @CBinsights report showing a 713% increase in funding. https://t.co/6n0RGLzN1o
— Cointelegraph (@Cointelegraph) February 5, 2022
More than $713 million was invested globally in blockchain in 2021, according to CBI Insights. That’s a lot more than the $6.9 million invested in blockchain last year. Crypto adoption has been the main focus of venture capital funding. Companies have invested in projects in a variety of sub-sectors, including nonfungible tokens, decentralised finance, crypto exchanges, and infrastructure services. Venture capital has been paying more attention to Web3, metaverse, and GameFi projects in the last few years.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.