Whether Sequoia Capital is All in Crypto is not important, VC paradigm shift is very important

Do you want to have an impact on the world, or do you want to participate in a financial game?

Recently, Sequoia Capital, which has the longest history and the largest fund scale, “the strongest venture capital on the ground”, has frequently issued high-profile All in Crypto and Web 3.0 signals.

On the one hand, Sequoia Capital and Sequoia India have changed their Twitter profiles in the past two days, focusing on encrypted keywords such as “DAO”, “Metaverse”, and “Mainnet Faucet”, and auctioning NFTs to catch up with the wave, and continue to speak out on social media .

On the other hand, Sequoia Capital, Sequoia India, and Sequoia China have successively increased their investment in crypto companies. Sequoia Capital announced the establishment of a new large open-end fund last month and announced more than 30 financings this year. , Shen Nanpeng, the head of Sequoia China, also said that he is in “All in Crypto”.

However, perhaps because the discussion on the whole network was too enthusiastic, Sequoia Capital’s Twitter account deleted the relevant profile only one day later.

1. Web2.0 promoters actively embrace Web3.0

On December 8th (Wednesday), Sequoia Capital changed its Twitter profile to “Mainnet faucet. We help the daring buidl legendary DAOs from idea to token airdrops. LFG.” To the token airdrop”.

In a brief introduction, the content of encrypted “black words” exploded. “Mainnet” refers to the main network of the blockchain, and “faucet” is the faucet, which refers to the small airdrops distributed in the early days of the project, “DAO” is a decentralized self-organization, and the spelling of “buidl” is also exclusive to encrypted users.

The previous day, Sequoia India’s Twitter account also modified the same introduction “Sequoia India helped super programmers in India and Southeast Asia create a legendary DAO, from discord to metaverse”, and changed the account positioning to: Metaverse (metaverse) ).

Whether Sequoia Capital is All in Crypto is not important, VC paradigm shift is very important

Early this morning, Beijing time, Sequoia Capital once again tweeted a popular “GM” (good morning) tweet used by users in the crypto community to greet each other, which was liked by more than 3,000 people.

Frequent Crypto Native speeches made people in the crypto community ridicule “I feel like watching Cai Ming say internet buzzwords in the spring evening”, “It seems like your grandpa gets up in the morning and tells you that today is really YYDS.”

Then, in the chat records between Shen Nanpeng, the global managing partner of Sequoia Capital, and Feng Bo, the founder and partner of Dragonfly Capital, Shen Nanpeng also said that he was “All in cryto”. Perhaps a little excited, Shen Nanpeng also misspelled “Crypto”.

Whether Sequoia Capital is All in Crypto is not important, VC paradigm shift is very important

However, after a lively discussion on the whole network for a day, they were rushing to tell Sequoia All in Crypto news, but they have silently changed their Twitter profile from Web 3.0 version back to Web 2.0 version, and returned to “helping legendary companies IPO”. It attracted melon-eating people to laugh and talk about “Sequoia’s last day of All in is over.”

Of course, ridicule belongs to ridicule. It is understandable that the PR is too effective and the established capital wants to be low-key. In any case, the effect has been achieved, and in the past period of time, Sequoia’s sincere investment and active embrace of Web3.0 series of actions have been enough to show them. Determination.

For example, at the beginning of this month, Sequoia Capital tested the waters to catch a wave of NFT trends. On December 3, Sequoia Capital tweeted that the 2005 YouTube Investment Memorandum will be auctioned as an NFT, anyone can bid, and the proceeds will be used for the 0xPARC (Ethereum Cryptography Application Research Project) public ecosystem fund. The winner will have 100% ownership. 

The news quickly fermented, and a large number of encrypted people participated in the auction. In the end, NFT collector Panksy.eth bought the collection for 200 ETH . 

Regarding the significance of this auction, Sequoia Capital also specially issued a long narrative, indicating that this is bidding farewell to Web2.0 and embracing the new era of Web3.0. “The YouTube Memo NFT is an opportunity to own a piece of Internet history, and this is a good reason. This 2005 seed investment memo is a time capsule in the Web 2.0 era, so it seems appropriate to auction it on the eve of Web 3.0. ” 

2. Establish an open fund and invest heavily in crypto companies

Of course, publicity stunts are only one aspect, it doesn’t matter what you say, what you do is important. From the data point of view, Sequoia Capital is “increasing” this year to bet on projects in various fields of the encrypted track.

At the same time, Sequoia Capital also announced last month that it plans to become a registered investment advisor (RIA) with the SEC in the United States in order to invest more in alternative assets such as cryptocurrencies. In addition, according to a statement issued by Sequoia partner Roelof Botha, they are forming a new open fund that will not have an “artificial time frame”. This permanently open fund is the choice of many institutions in the crypto circle.

In fact, Sequoia started its investment in the encryption field as early as 2014. In 2017 and 2018, he participated in many investment in encryption projects. However, as the bubble burst in 18 years and the collective ebb of traditional VCs, Sequoia’s investment in the encryption field also slowed down in the next two years. Some projects have been invested, but most of them are in the category of large-scale infrastructure.

2021 is different. Since the successful listing of Coinbase on the Nasdaq in April , VCs that have doubts about the compliance of the crypto industry have once again ignited their enthusiasm for investment in crypto projects. Many funds have shown this tendency. Legendary VC In the middle of a16z, the largest crypto fund in history with a value of $2.2 billion was established, which also made it impossible for global capital to ignore it.

Therefore, in the coming 2021, Sequoia Capital has launched a “buy, buy, and buy” model globally, and continue to deploy public chains, exchanges, Layer2, and NFT tracks. According to public information, three investment institutions, including Sequoia Capital (U.S.), Sequoia China, and Sequoia India, announced more than 30 investment projects (including follow-up investment) this year, including:

  • Crypto derivatives platform FTX
  • Digital asset custody platform Fireblocks
  • Ethereum Layer 2 Solution StarkWare
  • Ethereum Layer 2 Solution Polygon
  • Cryptocurrency Index Protocol Index Coop
  • Crypto startup Iron Fish
  • CertiK, a blockchain security company
  • Boca DeFi agreement Parallel Finance
  • Metaverse interactive platform Gather
  • Game Startup Studio Faraway
  • Cricket NFT Platform Faze Technologies
  • Strips Finance, a decentralized fixed income trading platform
  • Social blockchain platform DeSo
  • African mobile payment platform OPay 
  • PayPal Finance, Asia’s largest crypto financial institution
  • Public resource trading platform Biaoxin Smart Chain
  • Digital payment company Stripe
  • Robinhood, a stock and cryptocurrency trading platform
  • Cosmos Ecological Mobility Staking Agreement pSTAKE
  • DeFi platform Beta Finance
  • Crypto Asset Management Platform Coinshift
  • Digital Bank Tonik Financial
  • Cryptocurrency trading platform CoinSwitch Kuber.

(Note: The above items can be searched in the Planet Daily APP for more information)

From the data point of view, Sequoia Capital has placed a heavy bet on the infrastructure platform of the encrypted finance field and blockchain ecology around the world, from encrypted exchanges, asset management platforms, payment tools, to the underlying public chain, technology middleware, and security companies. At the same time, they also tried a small amount of new field exploration, such as Polkadot Eco’s DeFi protocol and NFT project. 

In general, based on the scale of funding, Sequoia Capital prefers mature targets with high certainty. For example, Sequoia China participated in the investment of Animoca Brands in October this year. Ministry of Ecological Projects, the revenue in the first three quarters of this year was nearly 530 million U.S. dollars, and it holds more than 600 million U.S. dollars of current digital assets.

3. Paradigm shift of venture capital

Venture capital emerged in the Silicon Valley of the United States in the 1960s. In the past few decades, venture capital institutions have been pioneers in leading technological progress and business innovation. They accompany innovators and entrepreneurs through capital and resources, and advocate risk-taking, Be free and open, and let flashy ideas shine into reality. Helping the investment portfolio continue to grow and move towards an IPO (initial public offering of shares) is its ideal exit method.

However, with the passage of time and market changes, today’s venture capital is no longer the representative of risk-takers. Capital resources continue to move closer, and their strategies tend to be conservative, even avoiding innovation risks, only betting on certainty. Sexual opportunities, from early investment to late investment, from an innovator to a superior “Old Money”.

The operating mode of most VCs is no longer the “research and data-driven bold innovation”. In addition to capital, the value they can provide to entrepreneurs has also become very limited.

However, with people discussing the open Internet of Web 3.0 and the discussion of DAO’s decentralized business form, the fund raising method of the project, the exit method of investors, and the relationship between investors and entrepreneurs have also taken the lead in the encryption field. .

There are many problems with the 1CO attempt, but it does show entrepreneurs and investors around the world a new way to raise funds for start-up projects. After several years of development, today’s token lock-up period, economic model, and requirements for investor contributions have a new system.

In the crypto world, we praise technological innovation, make risky investment decisions, and even become a member of the project that contributes to and participates in governance, spreads consensus, and constantly shares and exchanges.

Therefore, we believe that: venture capital will not disappear, but its paradigm must change in the Web 3.0 era.

If you don’t subvert yourself, you will be subverted by others, allowing Sequoia Capital to actively embrace new trends. The king status in the old world is the reason why they still hesitate.

Finally, I want to ask a very interesting question: Do you want to have an impact on the world, or do you want to participate in a financial game?

Perhaps today, many people take it for granted and disdain to believe that the attribute of the encryption world is the latter, but a few smart people know that the tools and facilities of the encryption world are going to Web 3.0, which is as exciting as the birth of computers and the emergence of the Internet. .

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/whether-sequoia-capital-is-all-in-crypto-is-not-important-vc-paradigm-shift-is-very-important/
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.

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