“The betting track is more important than the betting player”, this is an incisive summary of the investing style of Sequoia Capital and its founder Don Valentine.
As one of the oldest and most successful top venture capital firms in Silicon Valley, Sequoia Capital has invested in Atari, Cisco, Yahoo, Google, Oracle, Nvidia, Paypal, LinkedIn, Stripe, YouTube, Instagram and other Internet and The brightest company in fintech.
In recent years, with the rapid development of the encryption field and the competition of traditional institutional giants, the attention to the encryption field has further increased. A new era of disruption may be slowly unfolding. At the same time, Sequoia Capital’s strategy in this field has also changed from “early testing the water” to “full embrace”, and began to follow the footsteps of Andreessen Horowitz (a16z) to bet heavily in the field of cryptocurrencies, including but not limited to investing in crypto companies, abandoning 10-year cycle system to radically adjust the fund structure, apply to become a registered investment advisor (IRA), launch hundreds of millions of dollars in encrypted funds, release NFTs, etc.The Move-to Earn game STEPN, which has become popular recently, was jointly invested by Sequoia Capital India.
This article will disassemble the layout matrix of Sequoia Capital and its entities in Europe, America, China, and India in the encryption field (including the Metaverse), and summarize the 68 projects or companies invested by these three entities in the encryption field.
These three entities have roughly the same number of investments in this field, all in the early 20s. Among them, Sequoia Capital India has significantly accelerated its layout this year, investing in Polygon, STEPN, the electronic signature agreement EthSign, and the YGG Indian subsidiary IndiGG. , Key infrastructure solution Web3Auth, Polygon-based P2E game Ethlas, Flow-based cricket NFT market FanCraze and other 11 projects, accounting for more than half of the entity’s total crypto investment (21). Sequoia Capital (Europe and the United States) has also stepped up its pace. This year, it has invested in 7 deals including EthSign, the Solana ecological NFT market Magic Eden, and the full-chain interoperability protocol LayerZero Labs. Two of Sequoia Capital China’s four investments in the crypto space this year are Metaverse Infrastructure.
In addition, Sequoia Capital and Sequoia India entities are relatively scattered in terms of investment categories, including games, Metaverse, cross-chain, trading platform, NFT, DeFi, Web3, public chain, security, domain name, expansion, wallet, and storage. In terms of dabbling, Sequoia China is relatively more focused on the underlying infrastructure.
In terms of DeFi and game investment, Sequoia has also begun to focus on projects on Solana. Among them, Sequoia Capital has invested in social blockchain game Faraway Games and NFT market Magic Eden, and Sequoia India has invested in Solana-based games STEPN, Blockchain browser and data analysis platform Solscan and Socean Finance, Sequoia China invested in the Solana decentralized exchange protocol and wallet. In addition, Sequoia Capital and Sequoia India have a small focus on projects on Flow, Cosmos, Parallel Finance, and Arbitrum.
Sequoia Introduction and Architecture
Sequoia Capital (Sequoia Capital) is a venture capital company founded by Don Valentine, the father of Silicon Valley venture capital, in 1972. It has been half a century since then. The word “Silicon Valley” was only used when it was founded. less than two years. The name “Sequoia” is due to Don Valentine’s hope that the company will thrive and grow like a redwood tree.
Don Valentine used Sequoia’s first $3 million fund to invest in veteran gaming companies Atari and Apple, followed by Cisco, Google, Instagram, Airbnb, Stripe, and Yahoo. Although Don Valentine handed over control of the company to Doug Leone and Michael Moritz in 1997, his investment philosophy of “track racers are more important” and “value investing” has a huge impact on Sequoia and even many investors. and continues to this day.
While Sequoia has made a lot of money, the brilliant achievements of the invested companies are also obvious to all. In addition, according to Sequoia, startups that have raised seed rounds through Sequoia are 4x more likely to raise a successful Series A round, and 99% of companies that have raised seed rounds from Sequoia in the past decade are still in operation or Already acquired, Sequoia-backed seed and Series A companies are on average about 2x more valued at their next funding rounds.
Sequoia Capital currently has commercial entities in Europe, America, China, and India, as well as Sequoia Capital Global Equities (SCGE) and Heritage Fund.
Doug Leone became the sole head of Sequoia in 2012 after Michael Moritz resigned from his day-to-day duties, and earlier this month, Sequoia Capital announced that Doug Leone would be stepping down as senior steward and managing partner to be led by Sequoia’s U.S. and European operations. Managing partner Roelof Botha took over on 5 July. Doug Leone has previously led investments in companies including YouTube, 23andMe, MongoDB, Natera, Square and Unity.
In addition, Shen Nanpeng will continue to be responsible for the China business as the global managing partner and the founding and managing partner of Sequoia China. In addition, each Sequoia entity will continue to be led by a local managing partner, with Roelof Botha continuing to lead the Sequoia US/Europe entity and Shailendra Singh leading Sequoia India.
Sequoia’s Encrypted Layout Matrix
Sequoia Fund Structure and Transformation Adjustment
October was a key turning point for Sequoia. Sequoia announced a fund restructuring, for its US and European operations, abandoning the 10-year cycle model of funds in the venture capital industry, and will be reorganized into The Sequoia Capital Fund. This means that the fund’s investment in companies will no longer have a maturity date, and it will no longer be forced to end its relationship with the company due to the 10-year cycle mechanism, so that Sequoia can establish a longer-term deep relationship with these companies, It can also join the board of directors of the invested company to help the company develop better.
In addition, in order to increase the flexibility and flexibility of investment activities, Sequoia Capital has also applied to become a registered investment advisor (RIA) like a16z, including secondary market or initial public offerings. In January this year, Sequoia Capital has been approved by the US Securities and Exchange Commission to register as an investment adviser.
The transformed Sequoia can then get rid of the 20% investment size limit in what the SEC regards as a high-risk investment space, and can increase its investment in emerging asset classes to a greater extent, such as cryptocurrencies and seed investment programs.
Sequoia Launches Crypto-Specific Fund
According to Crunchbase statistics, Sequoia Capital has raised a total of $19.8 billion through 31 funds, the last of which is the $600 million crypto fund (Sequoia Capital Fund sub-fund) announced in February this year, which is also the capital of Sequoia Capital since 1972. The first industry-specific fund since its inception in 2008.
In an interview with The Block, Sequoia Capital partner Shaun Maguire said that the Sequoia Crypto Fund has high investment flexibility and will mainly invest in liquid tokens, including those listed on cryptocurrency exchanges and those that have not yet been listed. Individual projects invest between $100,000 and $50 million and plan to participate in processes ranging from staking to providing liquidity to governance.
In addition to the cryptocurrency sub-fund, Sequoia will continue to invest in cryptocurrency startups through its main seed, venture, growth and expansion funds, which have a combined capital commitment of more than $7.5 billion.
Next, we compiled and summarized the investment projects of the three Sequoia entities in the cryptocurrency field through official channels, Crunchbase, CB Insights, IT Juzi, Qichacha and other public information.
Sequoia Capital (Europe and America)
In the investment classification on the official website of Sequoia Capital, the “encryption” category is specially set up. Currently, there are 12 selected encrypted investment portfolios announced on the official website, including the underlying Layer1 blockchain DESO where BitClout is located, and multi-person based on Solana. Game projects Faraway Games, Filecoin, Fireblocks, FTX, Domain Name System Handshake, Privacy Public Chain Iron Fish, LayerZero, Parallel Finance, Privacy Collaboration Platform Skiff, StarkWare, Strip Finance.
Source of information statistics: Sequoia official website, CB Insights and Crunchbase
According to incomplete statistics, Sequoia Capital has invested in a total of 25 projects in the field of encryption. Among them, five encryption investments made public in March this year include Web3 application extension and privacy system Espresso Systems, electronic agreement signing agreement EthSign, Solana ecological NFT market Magic Eden, privacy-limited collaboration platform Skiff, and full-chain interoperability protocol LayerZero have made seven investments in crypto this year.
Aside from Block, Robinhood, Citadel Securities, and Stripe, Sequoia first began testing the crypto space in 2017, when Filecoin raised $52 million ($0.75 per token) from 150 investors through an advisor sale. , the highest increase once reached 313 times, and the current price increased by more than 30 times. At present, the fully diluted valuation of Filecoin has reached 48 billion US dollars.
Of course, Sequoia Capital will make additional rounds of investment after discovering potential investment targets. For example, StarkWare, the developer of Ethereum Layer 2, started investing in Sequoia when the project was established, and then added two more rounds. Directly led a $50 million round of financing. Also making additional investments are Fireblocks, a digital asset custody, transfer and settlement platform, FTX, a mainstream crypto trading platform, and Skiff, a privacy collaboration platform.
In addition, Sequoia Capital also (jointly) led investments in Metaverse platforms Gather, Fireblocks, gaming Galaxy Fight Club, crypto savings project Multis, Polkadot ecological lending projects Parallel Finance, and StarkWare.
Sequoia Capital India
In 2006, Sequoia Capital acquired Westbridge Capital Partners, an Indian venture capital firm, which was later renamed Sequoia Capital India.
According to Crunchbase statistics, Sequoia Capital India has raised US$3 billion through 8 funds with 557 investments.Combining CB Insights and Crunchbase data, Sequoia Capital India has 21 investments in the crypto sector, of which 11 were invested this year alone, and 5 of the 11 investments announced in March were in the cryptocurrency sector. This shows that Sequoia Capital India has significantly accelerated its layout in this field.
Source of information statistics: Sequoia official website, CB Insights and Crunchbase
Among these investments, Sequoia Capital India made two rounds of investments in Indian crypto exchange CoinSwitch Kuber and the Flow-based cricket NFT marketplace, led (or co-led) in projects including Band Protocol, Beta Finance, EthSign, Polygon , pSTAKE and STEPN etc.
Among them, Sequoia Capital India has achieved a huge (potential) return on its investment in STEPN. Currently, GMT has a nearly 250-fold increase compared to the IEO price ($0.01).
Sequoia Capital China
Founded in 2005, Sequoia Capital China has invested in hundreds of companies and projects in different fields, including Alibaba, JD.com, Vipshop, Meituan Dianping, and NIO. In November last year, Shen Nanpeng said in an exclusive interview with LatePost that deep technology and hard technology fields such as artificial intelligence, high-end manufacturing, and medical health have exceeded 80% of Sequoia China’s investment portfolio.
According to Crunchbase data, the entity has raised a total of $13.5 billion through 35 funds with 867 investments.Through the summary of IT Juzi and Crunchbase, Sequoia Capital China has invested in 22 projects in the field of encryption. Representative investments include the encrypted financial service provider Amber Group, PayPal Finance, game developer Animoca Brands, and encrypted trading. Platforms FTX and Huobi, mining giant Bitmain, cross-chain protocol Mutichain, public chains Conflux, Nervos, Ontology, etc.
Sequoia Capital China also invested in Next World Culture and Yuanxiang XVERSE this year, two underlying infrastructure companies in the Metaverse. Among them, Yuanxiang XVERSE was founded by Yao Xing, the former vice president of Tencent Group and the president of AILAB, aiming to build the next generation One-stop platform for 3D content production and consumption.
Source of information statistics: Sequoia official website, IT Orange and Crunchbase
“Cryptocurrencies will be the biggest trend in the next 20-30 years, with 20% of Sequoia’s new investments in the US and Europe in cryptocurrency projects. In terms of its crypto investment themes, Sequoia’s focus on cross-chain interoperability is and the GameFi project, adding that multi-chain is the future. Sequoia is monitoring developer activity across networks including Terra, Avalanche, NEAR, Polkadot and Cosmos,” said Shaun Maguire, Partner at Sequoia Capital.
If starting to invest in crypto projects is Sequoia’s test of the waters in the field of encryption, then adjusting the fund structure and launching a dedicated crypto fund is definitely a sign that Sequoia Capital fully embraces the field of encryption.
In the crypto space, can Sequoia capital continue its value investing and keen style and lead the investment trend? let us wait and see. At the same time, with the continuous penetration and deployment of a16z and Sequoia Capital and other large-scale venture capital in the field of encryption, it is expected that more venture capital will gradually follow suit.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/overview-of-sequoias-crypto-investment-landscape-a-total-of-68-investments-have-accelerated-significantly/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.