Sequoia provides $ 500 million for the advance into the cryptocurrency markets

Sequoia Capital, one of the most influential risk capital groups of Silicon Valley, plans to penetrate deeper into the markets for cryptocurrencies and to provide at least $ 500 million for investments in digital assets.

The company based in California announced on Thursday that it made between $ 500 and $ 600 million for a new fund, which would mainly invest in cryptocurrency stands that are traded on third-party exchanges.

The move is part of a company-wide restructuring with a special fund that enables it to play a more active role in cryptocurrency networks, including the validation of transactions and the coordination on governance matters.

"The area in crypto in which we have the greatest improvement options is really in the liquid stuff," said Shaun Maguire, partner at Sequoia. "Our founders asked us a lot of help there, and we simply couldn't deliver the traditional risk capital model."

The Sequoia's advance shows how large tech investors are increasingly immersing in the markets for cryptocurrencies and looking for the explosive financial returns that have largely gone to enthusiasts and specialized funds.

hundreds of projects based on Ethereum and other digital ledgers have issued digital assets and used them to organize new consumer and financial applications. Tiger Global Management, one of the world's largest tech investors, made his first token investment in the freelance network Brainttrust in December.

The new fund will enable Sequoia to participate more in the cryptocurrency projects he supported. A fifth of the investments of Sequoia in the USA and Europe last year flowed into the cryptocurrency sector, including start-ups such as the 8 billion dollar security company for digital assets Fireblocks.

In contrast to traditional start-ups, many cryptocurrency projects have no traditional board members, but distribute tokens that enable users and investors to vote on important decisions.

Sequoia previously bought shares and tokens on cryptocurrency projects through its traditional risk funds. The company's token investment included the social media startup DESO and the data storage network Filecoin.

global regulatory authorities recently reinforced their examination of cryptocurrency groups, which sends a shower through the most risky corners of the more than $ 2 trillion market and at the same time conjured up the ghost that many tokens could finally be classified as securities.

Maguire said that Sequoia would apply a “20-year lens” to its cryptocurrency stocks and avoid trading with tokens, except under “extraordinary circumstances”.

"We expect regulation, but we have to find a balance between the protection of consumers and maintaining innovation in a really important area," added Maguire. "It reminds me of the early regulation of the Internet."

Sequoia announced the fund as part of a restructuring to create a single overarching unit, the Sequoia Fund, which holds permanent investment capital.

The cryptocurrency funds and the Sequoia flagship funds will distribute their revenues to the Sequoia Fund, which enables investors to be resolved twice a year after an initial blocking period of two years.

Sequoia said investors transferred 95 percent of their money to the Sequoia Fund, but refused to comment on the size of the fund. According to official documents, the group managed assets of more than $ 80 billion at the end of September.

As part of the restructuring,

Sequoia requested that a registered investment advisor to become the US stock exchange supervisory authority Securities and Exchange Commission in order to be able to invest more money in public stocks and cryptocurrencies.

Roelof Botha, one of Sequoia's most high -ranking partners, said last year that the restructuring would mean that investments "no longer have 'expiry date".