Regardless of latest market woes, Sequoia stays optimistic about crypto investments
Regardless of the headwinds dealing with the enterprise capital business and its portfolio holdings, Sequoia Capital stays optimistic about its investments in cryptocurrency. Alfred Lin, seed/early companion at Sequoia, mentioned this week that the agency would stay dedicated to crypto funding, Reuters reports.
Lin says that the enterprise capital big stays optimistic in regards to the cryptocurrency sector in the long run.
Sequoia Capital was hit arduous by the collapse of the FTX alternate after pouring $225 million into the now-defunct crypto alternate solely to mark your complete funding down.
Lin admitted the VC big’s failure to uncover the connection between FTX and Alameda and alleged fraudulent actions performed by disgraced founder Sam Bankman-Fried. Although Sequoia owned lower than 1% of FTX, Lin famous that the previous may have requested for a seat on the latter’s board. Nevertheless, this proved unattainable because of the staking dimension.
Main concession
The lowering variety of enterprise capital offers has prompted Sequoia to decrease administration charges in its two just lately launched crypto and ecosystem funds, mentioned Lin.
The bear market has considerably suppressed enterprise investments throughout the board, driving Sequoia Capital’s present push for an unorthodox pricing mannequin for its crypto and ecosystem funds. The enterprise capital big communicated new modifications relating to charges to traders in December, which now permits restricted companions (LPs) who dedicated capital to pay administration charges based mostly solely on deployed capital. Such an method has changed the normal capital administration mannequin.