Sequoia Capital Partner Believes Lots of Venture Capital Will Back Down on Crypto – Bitcoin News

Sean Maguire, Crypto Partner of Sequoia Capital, one of the most active venture capital firms when it comes to investments in cryptocurrency, has released its opinion on the future of many venture capitalists investing in cryptocurrency. For him, many companies that are now experimenting with crypto investments will “downgrade” due to market conditions and a misunderstanding of cryptocurrency as an investment.

Sequoia Partner Not Optimistic About Crypto Venture Capital

Sean McGuire, a crypto partner at Sequoia Capital, one of the most active venture capital firms in the crypto sector, is not too optimistic about the future of other venture capital firms in the region. McGuire, who specializes in companies in the tech and cryptocurrency sectors that are either in the initial investment or early investing stages, recently stated in a recent podcast that other companies now entering the crypto space will be “backtracking” on these investments when the markets are getting less foam.

However, he stated that Sequoia would not fall into this category due to the way these investments in the company are being made. According to Maguire, the company has “enduring intentions” when it comes to its investments in the sector. Maguire explained:

Sequoia is very intentional with everything we do and we spend a lot of time discussing every strategy change, everything, discussing every initial investment sometimes into painful detail, but it helps us make really good decisions and make decisions as a team rather than as individuals.

The company, which has already invested in several companies in the sector such as Polygon, launched a $500-600 million fund in February to invest in “liquid” crypto assets as a complement to its other investments to “be more actively involved in protocols” and “better support token-only projects.” .

misunderstanding cipher

This abandonment of cryptocurrency investments will also result from other elements. According to Maguire, there is a fundamental misunderstanding of what crypto and Web3 might offer as new technologies, with some investors describing decentralization as a “silver bullet.” Maguire announced:

Decentralization is not a panacea that just solves all problems and is best for everything. You know for the vast majority of computing, you want to be central.

The influx that blockchain-based companies have received from venture capital funds has been massive, spurred by the interest the market has developed from NFTs, Web3 and the metaverse as trends this year. In the first quarter alone, venture capital firms invested $30 billion in fintech and crypto startups.

What do you think of Sean Maguire’s stance on the future of some venture capital investments in cryptocurrency? Tell us in the comments section below.

Sergio Goshchenko

Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as a latecomer, he got into the crypto world when the price spike occurred during December 2017. Because he has a background in computer engineering, lives in Venezuela, and is influenced by the crypto boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks are disadvantaged.

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