In February 2022, Sequoia Capital made headlines by announcing its first dedicated crypto-focused fund—a bold move signaling deep confidence in the long-term potential of blockchain technology. This strategic shift didn’t come out of nowhere. In fact, the venture capital giant has been quietly building a robust portfolio in the blockchain and cryptocurrency space for nearly a decade.
From early bets on foundational infrastructure to high-impact investments in decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 platforms, Sequoia Capital—alongside its regional arms, Sequoia Capital China and Sequoia Capital India—has positioned itself at the forefront of digital asset innovation.
This article explores the evolution of Sequoia’s crypto strategy, analyzes key investments across regions, and breaks down the use cases driving their funding decisions—all while identifying patterns that reveal where the future of blockchain investment may be headed.
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The Genesis of Sequoia’s Crypto Journey
Sequoia’s foray into blockchain began as early as 2014 with an investment in String Labs, a startup focused on blockchain protocol development. While modest at the time, this marked the beginning of a broader strategic interest in decentralized technologies.
Fast forward to 2022, and the firm demonstrated serious commitment by launching the Sequoia Crypto Fund, a $500–600 million sub-fund under its flagship Sequoia Capital Fund. Unlike traditional venture funds, this vehicle is designed to invest directly in liquid tokens and digital assets, reflecting a more flexible and market-responsive approach to crypto financing.
Meanwhile, Sequoia Capital India announced two new funds totaling $2.85 billion—one focused on Indian startups and another targeting Southeast Asia—with explicit intentions to support the booming **Web3 ecosystem**. Similarly, **Sequoia Capital China** is reportedly raising around $9 billion across four new funds, with significant allocations toward fintech and cryptocurrency ventures within the region.
These moves underscore a unified global strategy: blockchain is no longer a niche experiment—it’s a core pillar of technological disruption.
Key Blockchain Investment Areas
Since 2017, Sequoia Capital and its affiliates have participated in over 60 blockchain and crypto-related deals, spanning infrastructure, DeFi, NFTs, custody solutions, and layer-1 protocols. Let’s examine the most impactful categories driving their investment thesis.
Blockchain Infrastructure & Development Platforms
A dominant theme across all three entities is a strong preference for blockchain infrastructure—the foundational tools enabling scalability, privacy, and interoperability.
One standout example is StarkWare, a developer of zero-knowledge proof (ZKP) technologies aimed at solving Ethereum’s scalability challenges. Sequoia participated in multiple rounds—from Series A through C—demonstrating long-term conviction in ZKP-based scaling solutions like zk-Rollups.
Similarly, the firm backed Iron Fish, a privacy-focused layer-1 blockchain, with a $28 million Series A investment. Another major play was **Espresso Systems**, which raised $32 million in a Series A round co-led by Sequoia to build fast, secure consensus layers using ZK tech.
These investments highlight Sequoia’s focus on protocols that solve real-world bottlenecks in performance and privacy—critical components for mass blockchain adoption.
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Decentralized Exchanges (DEXs) & DeFi Innovations
Decentralized finance remains a core area of interest. While specific DEX names aren’t detailed in public records, Sequoia’s portfolio includes several DeFi-adjacent plays, particularly those integrating institutional-grade security and settlement infrastructure.
For instance, its participation in Fireblocks’ $500 million Series E round in January 2022 underscores confidence in secure digital asset movement and custody—a critical enabler for both centralized and decentralized financial systems.
By investing in backend infrastructure rather than consumer-facing apps, Sequoia avoids speculative volatility while supporting the rails upon which DeFi applications run.
Regional Investment Strategies
Each arm of Sequoia has adopted a tailored approach based on regional market dynamics.
Sequoia Capital (Global)
From 2017 to mid-2022, the global fund directed 42% of its crypto investments into Series A rounds, followed by Seed VC (29%) and Series B (17%). Geographically, 75% of investments were U.S.-based, with smaller allocations to Israel (13%), the Bahamas (8%), and Singapore (4%).
This reflects a strategy centered on early-stage innovation in mature tech ecosystems where regulatory frameworks are evolving alongside technological advances.
Sequoia Capital China
Despite regulatory headwinds in mainland China regarding cryptocurrency trading and mining, Sequoia China has continued to back blockchain innovation—particularly in Hong Kong and Singapore.
Between 2017 and 2022, it split investments evenly between Series A (33%) and Seed VC (33%), showing balanced support for both early ideation and product-market fit stages. Notable 2022 activity included participation in Amber Group’s $200 million Series B, a leading crypto finance firm providing institutional liquidity and trading services.
With operations shifting toward offshore hubs, Chinese-market crypto innovation continues under regulatory scrutiny—but venture capital interest remains strong.
Sequoia Capital India
Launched later into the space, Sequoia India made its first crypto bet in 2019 with a seed investment in Band Protocol, a cross-chain data oracle platform. Since then, it has become increasingly active—making 11 blockchain investments by mid-2022 alone.
Its focus skews heavily toward Seed VC (74%), indicating a strategy of capturing value at the earliest stages. One major highlight was its involvement in FanCraze’s $100 million Series A, a cricket-themed NFT platform allowing fans to collect licensed digital memorabilia.
This reflects growing consumer engagement with NFTs in emerging markets, where fandom culture and mobile-first adoption create fertile ground for Web3 experimentation.
Core Keywords Driving Strategic Focus
Through analysis of Sequoia’s investment patterns, several core keywords emerge as central to their blockchain thesis:
- Blockchain infrastructure
- Decentralized finance (DeFi)
- Web3 ecosystem
- Zero-knowledge proofs (ZKP)
- Layer-1 blockchains
- Digital asset custody
- NFT platforms
- Crypto investment strategies
These terms aren’t just buzzwords—they represent tangible technological shifts that Sequoia is actively funding and scaling.
Frequently Asked Questions (FAQ)
Q: Did Sequoia Capital invest in FTX?
A: Yes, Sequoia Capital was an early investor in FTX, participating in multiple funding rounds before the exchange’s collapse in 2022. The firm has since acknowledged the loss as part of venture capital risk.
Q: Does Sequoia still invest in crypto after the 2022 market downturn?
A: Absolutely. The launch of the dedicated $500–600 million Sequoia Crypto Fund in 2022 demonstrates ongoing commitment despite market volatility.
Q: What is the difference between Sequoia Capital, Sequoia China, and Sequoia India?
A: After a restructuring in 2023, these entities now operate independently. Each manages its own funds and makes autonomous investment decisions tailored to local markets.
Q: Why does Sequoia focus so much on blockchain infrastructure?
A: Infrastructure projects provide foundational value—like databases or operating systems—that enable higher-level applications (e.g., DeFi, NFTs) to function efficiently and securely.
Q: Are there any notable NFT investments by Sequoia?
A: Yes. Through FanCraze—a cricket NFT platform backed by Sequoia India—the firm has entered the sports collectibles space with a mobile-first model targeting emerging markets.
Q: Can individual investors access the Sequoia Crypto Fund?
A: No. The fund is currently available only to qualified institutional and accredited investors.
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Final Thoughts: A Long-Term Bet on Digital Transformation
Sequoia Capital’s journey into blockchain reflects more than just financial opportunism—it represents a belief in the transformative power of decentralized systems. Whether funding privacy-preserving layer-1 blockchains, enabling secure custody solutions, or backing NFT platforms rooted in real-world engagement, their strategy emphasizes foundational impact over hype.
As Web3 matures and adoption accelerates, firms like Sequoia continue to shape the architecture of tomorrow’s digital economy—one strategic investment at a time.