Jacquelyn Melinek

<div id="highlights-block_620e829c7741a" class="highlights">
 <ul>
 <li>The fifty-year-old company has $80 billion in assets under management</li>
 <li>The firm&#8217;s involvement in crypto started back in 2015 when it began investing in the space through both equity and tokens</li>
 </ul>
 
</div>



Sequoia Capital is launching a new $500 million to $600 million sub-fund focused primarily on liquid tokens and digital assets, a spokesperson confirmed with Blockworks on Thursday.



The capital plans to complement its other crypto investments in seed, venture, growth and expansion funds. It is also one of the first sub-funds to be launched as part of its new Sequoia Capital Fund, an open-ended liquid portfolio, the company said.



The founders have asked the firm to take a more active role in managing its tokens through staking, providing liquidity, participating in governance and trading through portfolio companies’ platforms. This fund will give it the ability to engage further, the company shared.



“Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves,” Sequoia Capital’s Michelle Bailhe, Shaun Maguire and Alfred Lin wrote on the Sequoia <a href="https://sequoia.medium.com/a-block-step-forward-14274f4a0e65" target="_blank" rel="noreferrer noopener">blog</a>.



The firm&#8217;s involvement in crypto started back in 2015 when it began investing in the space through both equity and tokens. In 2017, Sequoia invested through its main funds, while in 2021, 20% of its new investments throughout the US and Europe were in crypto.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We believe that crypto is more than a sector; it’s a fundamental shift that will impact all sectors,” Sequoia noted.&nbsp;</blockquote>



In general, Sequoia Capital invests in a number of sectors aside from crypto, such as technology, financial services, energy and healthcare. The fifty-year-old company has $80 billion in assets under management, according to PitchBook data.



This scale of investment is not uncommon for the firm. Sequoia Capital’s India branch <a href="https://cms.blockworks.co/polygon-closes-450m-raise-led-by-sequoia-india/" target="_blank" rel="noreferrer noopener">led a $450 million</a> private token sale in <a href="https://cms.blockworks.co/?s=polygon" target="_blank" rel="noreferrer noopener">Polygon</a> — a decentralized Ethereum scaling platform — earlier this month. Separately, in January, Sequoia and Paradigm invested <a href="https://cms.blockworks.co/sequoia-and-paradigm-invest-1-15b-in-citadel-securities/" target="_blank" rel="noreferrer noopener">$1.15 billion</a> in Citadel Securities.



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Alfred Lin

Sequoia Capital Is Raising up to $600M in New Sub-fund To Focus on Tokens

Ben Strack

<div id="highlights-block_61ddb04071b0c" class="highlights">
 <ul>
 <li>Venture capital firm Sequoia led the round through investments from its Heritage, Global Equities and Global Growth funds</li>
 <li>Crypto-focused investment firm Paradigm will help Citadel expand to more markets and asset classes, including crypto, according to Paradigm co-founder Matt Huang</li>
 </ul>
 
</div>



Venture capital firm <a href="https://www.sequoiacap.com" target="_blank" rel="noreferrer noopener">Sequoia Capital</a> and crypto-focused investment firm <a href="https://www.paradigm.xyz" target="_blank" rel="noreferrer noopener">Paradigm</a> have invested $1.15 billion in market maker <a href="https://www.citadelsecurities.com" target="_blank" rel="noreferrer noopener">Citadel Securities</a> as it looks to ​​further scale its business and expand into new markets.



Based in Chicago, Citadel offers equity and fixed income products to 1,600 clients globally, including central banks, financial institutions, government agencies, corporations, insurers and sovereign wealth funds.



&#8220;As technological innovation in financial markets becomes only more important, we see enormous opportunities to meet the needs of our clients across more markets and more products,” Citadel Securities CEO Peng Zhao said in a statement.



Citadel Securities Chairman Ken Griffin told the Economic Club of Chicago in October that his company does not trade cryptocurrencies because of regulatory uncertainties around them, <a href="https://www.reuters.com/business/citadel-securities-avoids-crypto-due-regulatory-uncertainty-founder-2021-10-04/" target="_blank" rel="noreferrer noopener">Reuters reported</a>.



A Citadel spokesperson did not immediately return Blockworks’ request for comment about how the company could look to get involved in crypto.&nbsp;



Sequoia led the funding round through investments from Sequoia Heritage, Sequoia Capital Global Equities and its Global Growth Fund.



&#8220;Citadel Securities has carved out a unique place in the financial markets through its ability to absorb and price risk using techniques and capabilities from far outside the traditional world of Wall Street,&#8221; Sequoia Partner Alfred Lin said in a statement.&nbsp;



A Sequoia representative did not immediately return Blockworks’ request for comment.&nbsp;



Sequoia has <a href="https://cms.blockworks.co/sequoia-capital-may-be-embracing-crypto/" target="_blank" rel="noreferrer noopener">recently signaled its interest</a> in the crypto space. It changed its Twitter bio last month to say: “Mainnet faucet. We help the daring buidl legendary DAOs from idea to token airdrops. LFG.”  It also recently <a href="https://opensea.io/assets/0x97e5762a9670bb5aa5b47e132a045d6df1c309fe/0" target="_blank" rel="noreferrer noopener">auctioned off</a> its 2005 YouTube memo as a non-fungible token (NFT) on OpenSea for $884,776 worth of ether.



Meanwhile, Paradigm is an investment firm focused on investing in crypto and Web3 companies and protocols. It often invests at early stages and offers additional capital to its portfolio companies over time, according to the firm.



Paradigm <a href="https://cms.blockworks.co/paradigm-launches-2-5-billion-crypto-fund/" target="_blank" rel="noreferrer noopener">announced the launch</a> of a $2.5 billion venture fund in November. The new fund was to operate alongside Paradigm’s existing flagship fund and will “continue investing in the next generation of crypto companies and protocols,” Paradigm co-founders Matt Huang and Fred Ehrsam said at the time.



&#8220;We look forward to partnering with the Citadel Securities team as they extend their technology and expertise to even more markets and asset classes, including crypto,&#8221; Huang said in a statement.&nbsp;



A Paradigm spokesperson declined to comment on the investment in Citadel.



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