Global Venture Capital, Sequoia Capital Launches Two New Web3 Investment Funds
Author: Chayanika Deka Last Updated Jun 14, 2022
The new funds are the largest for any investor and come at a time when the global traditional finance, as well as the crypto market, faces a severe crisis.
Global venture capital and growth investor Sequoia Capital has announced the launch of two new funds – a $2 billion early-stage venture, and growth product for India as well as an $850 million dedicated one for Southeast Asia. The focus will also be on the Web3 ecosystem.
- Sequoia has ambitious plans for the region and aims to “double down.” It currently operates several programs, including Surge and Spark. While the former supports very early-stage firms, the latter offers fellowship to female founders other than venture and growth investments.
- The official blog post wrote,
“This fundraise, which comes at a time when markets are starting to cool after a very long bull run, signals our deep commitment to the region and the faith our Limited Partners have in the long-term growth story of India and Southeast Asia.”
- Sequoia India and Southeast Asia happen to be the most prolific investors in the region, but the unveiling of the two funds comes as a positive development amidst the increasing pessimism in the financial market space.
- While observing the emergence of a “thriving” Web3 ecosystem and new waves of innovation in markets like Vietnam, Philippines, Thailand, and Malaysia, Sequoia Southeast Asia aims to continue to invest actively at the seed, Series A, and growth stages in companies across the regions with the new fund.
- The firm is also expanding its focus on newer venues, including Web3, despite a lack of regulatory clarity. It is important to understand that most Indian venture capital firms have been reluctant to back crypto startups due to the ruling party’s regressive stance on the industry and failure to make a meaningful breakthrough in the tax rule that came into effect in April this year.
- Contrastingly, Sequoia India and Southeast Asia have invested in many web3 startups in the country, such as CoinSwitch Kuber and Ethereum layer 2 protocol, Polygon. #TOGRP
Bermuda banks on clear regulatory framework to attract more crypto firms
Amidst the current volatility in the cryptocurrency market, Bermuda is banking on its clarity surrounding digital asset legislation to attract more crypto projects and companies.
Bermuda is one of the few countries in the world that has implemented a complete framework governing cryptocurrencies, according to a report by The Wall Street Journal published on June 3.
Bermudan officials believe that their expertise in international commerce, which accounts for around 27% of the island’s GDP, together with a skilled local workforce, translate into a basis for the creation of a strong digital-assets sector on the island.
In particular, Bermuda’s minister of economy and labor, Jason Hayward, said:
“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub.”
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More info to follow .
Japan passes stablecoin bill ensuring redemption at face value, Bloomberg says
Japan’s parliament introduced a legal framework for stablecoins guaranteeing that they are linked to the yen or another fiat currency and that holders have the right to redeem them at face value, Bloomberg reported today.Governments are looking to ensure protection for stablecoin investors after TerraUSD’s implosion led to multibillion-dollar losses from an asset that had been touted as safe, the report said.
The legal framework for stablecoins will take effect in a year, Bloomberg said. Japan’s Financial Services Agency will devise regulations for stablecoin issuers in the coming months. Japan’s parliament clarified the legal status of stablecoins as essentially digital money, meaning they can be issued only by licensed banks, registered money transfer agents and trust companies, the report said.
Argo CEO Peter Wall claims Bitcoin is gold 2.0, will become hedge against inflation
Peter Wall, the CEO of leading crypto mining company Argo, told CNBC in an interview on May 30 that Bitcoin (BTC) is “gold 2.0” and will eventually become a hedge against inflation, even if it doesn’t seem like it at the moment.
According to Wall, BTC’s limited cap of 21 million coins and its decentralized and permissionless nature will help the flagship cryptocurrency grow into digital gold.While he is sure BTC will become gold 2.0, Wall said the macro outlook for risky assets is still not great. However, he believes zooming out will help players in the industry overcome the current bearish sentiment in the market.
Binance raises $500 million fund to invest in ‘Web3’ as crypto slides into bear market
The company’s venture arm, Binance Labs, said Wednesday it has raised $500 million for its debut start-up fund, securing backing from venture capital firms DST Global and Breyer Capital as well as unnamed family offices and corporations. It comes after Andreessen Horowitz last week announced a mammoth $4.5 billion fund to invest in crypto start-ups.
The launch of Binance’s new fund arrives at a time when bitcoin and other digital currencies are down sharply. Bitcoin has plunged more than 50% since reaching an all-time high of nearly $69,000 in November. That’s taken a toll on publicly-listed crypto companies like Coinbase, whose shares have plunged 69% since the start of 2022. Investors fear the slump will feed through to privately-held crypto start-ups.