Wednesday, October 5, 2022

Sequoia China Defies Extreme Markets, Generates $9B in New Funding

Sequoia Capital China, a crypto venture capital firm known to lead several funding rounds has secured $9 billion in new funding round. The total fund generated is meant to be the biggest capital injection received by a single venture capital firm based out of China. Most of the startups that will be receiving the investment fund are technology inclined.

Neil Shen, a founding partner of Sequoia China lead the funding round. The generation of the fund came from pension and endowment funds. Family offices from the United States, Europe, the Middle East, and Southeast Asia were also involved. 

The funds are targeted towards the healthcare sector and majorly the technology sector. Sequoia China operates in isolation from the Sequoia Capital located in Silicon Valley.

In Comparison, Sequoia China’s budget is $8 billion. Therefore, the $9 billion raised transcends the initial budget. Altogether, the funds will be distributed amongst Sequoia China’s subsidiary funds including Expansion Fund I, Seed Fund III, Venture Fund IX, and  Growth Fund VII. 

The round is still on, but Sequoia decided to close up the fundraiser this week. Meanwhile, customers oversubscribed about 50% of the fund. 

Sequoia Capital’s attention to this funding round in this crucial market atmosphere displays the VC’s vast interest in technology. This is unlike other investors who pulled back on their investments due to the Chinese crackdown on technology.

Sequoia Seeks Adventures With Investment Funds

Generally, Sequoia plunges huge investments into seed funding, mid-stage funding, and many other kinds of funding rounds. Sequoia’s $9 billion round is one of those generated in difficult times as the fluctuating market conditions are obvious.

Key investors opined that only VCs like Sequoia Capital and Hillhouse can raise such heavy capital in this extreme period. According to an investor based in Beijing, these VCs see such investments as having lower risk. He said they compare it to making an index fund investment.

Sequoia India previously led a funding round for Polygon, an Ethereum (ETH) scaling solution earlier this year through the sales of the Polygon native token MATIC. The generated funds were worth $450 million raising Polygon’s valuation to $2 billion. 

Sequoia Capital launched an investment fund worth about $500 million to $600 million. The venture capital firm wishes to get more involved in crypto with the fund.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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