VC Giant Sequoia Capital Changing Fund Structure to Invest in Emerging Asset Classes Including Crypto
Venture capital firm Sequoia Capital is changing its fund structure to invest in emerging asset classes like cryptos along with initial public offerings (IPOs).
In a blog post, Roelof Botha, a partner at Sequoia, declared that the existing time-based model — “rigid 10-year fund cycle” — for investing has “become obsolete.”
Much like the VC giant Andreessen Horowitz (a16z), Sequoia is becoming a registered investment advisor that will give it more flexibility to invest out of restrictions and “enables us to further increase our investments in emerging asset classes such as cryptocurrencies and seed investing programs.”
Sequoia Capital is known for its early bets on Cisco, Apple, Google, Airbnb, Zoom, and Snowflake.
The firm is now establishing a single fund, the Sequoia Fund, that will raise money from LPs which will be funneled down to a series of smaller funds that will invest by stages.
Sequoia will now choose how much money they invest in crypto, early-stage start-ups, secondaries, more mature businesses, and international deals.
“This new structure removes all artificial time horizons on how long we can partner with companies,” Botha wrote.