Sequoia Capital: The Top Global Unicorn Investor of 2020 on Hurun’s List — How It Plans to Write a New Chapter in Web3

The Blockchain Investment Story of Sequoia Capital: From Traditional Technology to Web3
Sequoia Capital, one of the most influential venture capital firms globally, was founded in Silicon Valley in 1972. It has consistently led the fusion of global technology and capital. Not only has it played a critical role in the rise of tech giants like Apple and Google, but it has also demonstrated keen foresight and a robust investment logic by gradually shifting its focus to blockchain. This article delves deep into Sequoia Capital’s founding story, developmental trajectory, investment strategies, and iconic case studies to explore its strategic layout and future prospects in the blockchain sector.

1. Founder Don Valentine: The Vision and Philosophy of the Father of Silicon Valley

Sequoia Capital was founded by Don Valentine in 1972. At the time, Silicon Valley had yet to become the global tech hub it is today, but Valentine, with his deep background in the semiconductor industry, foresaw the immense potential of the tech industry. His core philosophy revolved around “investing in people” — identifying visionary entrepreneurs with strong execution capabilities.

Under Valentine’s leadership, Sequoia made early investments in companies like Apple and Cisco, which not only reshaped the tech industry but also revolutionized modern business models. Valentine firmly believed that investment should transcend short-term returns and focus on supporting innovators who can solve fundamental problems.

“Find great entrepreneurs who solve problems rather than merely chasing market trends.”
This philosophy has been a cornerstone of Sequoia’s enduring success across generations and industries.

2. The Development of Sequoia Capital: From Silicon Valley to Global Expansion

During the 1970s and 1980s, Sequoia Capital emerged as a key investor in Silicon Valley startups. Its investments in companies like Apple, Oracle, and Google solidified its reputation as a synonym for “tech investment.”

In 2005, Sequoia entered the Chinese market under the leadership of Neil Shen, who established Sequoia China. As the co-founder of Ctrip and Home Inn, Shen understood the unique demands of the Chinese market. Under his guidance, Sequoia China invested in tech unicorns like Meituan, Pinduoduo, and ByteDance, making Sequoia China a dominant player in the region.

In 2023, Sequoia Capital announced its global split, with Sequoia China rebranding as “HongShan,” marking its independent operations. This move not only solidified Sequoia China’s position but also enhanced its focus on blockchain.

Sequoia’s foray into blockchain began in 2014 with an investment in Huobi. With the rise of decentralized technology and Web3, Sequoia gradually shifted its investment focus toward blockchain infrastructure, DAOs, NFTs, and crypto finance, responding to the next wave of technological innovation.

3. Sequoia Capital’s Investment Strategy: Focused on Innovation and Long-Term Value

Sequoia Capital consistently prioritizes companies that define the future of their industries. Whether in the era of internet tech giants or blockchain infrastructure, Sequoia’s mission has always been to capture technologies capable of reshaping the world.

The firm’s core investment strategy is centered around “investing in people,” choosing entrepreneurs with vision and deep market insights. For instance, Sequoia China founder Neil Shen recognized Meituan’s Wang Xing for his sharp understanding of market demand and excellent execution.

Rather than chasing short-term trends, Sequoia emphasizes long-term value. In the blockchain sector, this translates to a focus on projects with technological “moats” and ecosystem expansion potential, such as investments in Nervos and CertiK.

4. Case Studies: Sequoia Capital’s Blockchain Investment Trajectory

• Huobi (2014): Sequoia’s entry into blockchain came with an investment in Huobi, a cryptocurrency exchange that quickly became a global leader. Huobi’s success laid the groundwork for Sequoia’s blockchain journey.

• Bitmain (2017): Sequoia led Bitmain’s Series A and later invested in its Series B round. As a global leader in mining hardware, Bitmain dominated the market with advanced ASIC chip technology.

• FTX (2021): Sequoia participated in FTX’s Series B round. Although FTX later collapsed, the investment highlighted Sequoia’s belief in the potential of decentralized finance (DeFi) and innovative exchanges.

• CertiK: Sequoia’s investment in CertiK, a global leader in blockchain security, underscores its commitment to securing blockchain ecosystems and setting industry standards.

• Magic Eden: By backing Magic Eden, a multi-chain NFT marketplace, Sequoia highlighted its focus on Web3 application scenarios, particularly in NFTs and virtual assets.

• STEPN: Supporting STEPN, a “Move-to-Earn” app on Solana, demonstrated Sequoia’s interest in blockchain’s integration with lifestyle and fitness.

• LayerZero: Sequoia’s investment in LayerZero, a protocol for blockchain interoperability, reflects its emphasis on seamless cross-chain connectivity.

5. Competition with A16z: How Sequoia Stands Out in Blockchain

Sequoia Capital and Andreessen Horowitz (A16z) are two dominant forces in blockchain investment. While A16z aggressively invests in trending sectors like NFTs and DeFi with large crypto funds, Sequoia takes a more measured approach, focusing on infrastructure and long-term ecosystem growth.

Sequoia’s advantages include:

• Infrastructure focus: Investments in foundational projects like CertiK and Conflux highlight its emphasis on blockchain’s technical backbone.
• Long-term perspective: Sequoia avoids short-term trends, instead focusing on enduring technological value.
• Global integration: Leveraging its extensive global network to provide strategic support beyond capital.

6. Challenges and Opportunities in Blockchain Investment

Blockchain faces challenges like regulatory uncertainty and rapid technological evolution. Sequoia mitigates these risks through diversified investments, strategic geographic choices, and a focus on projects with robust technical foundations.

7. Lessons from Sequoia Capital’s Blockchain Strategy

• A Benchmark for Technology and Capital Integration: Sequoia has established itself as a leader in blending technology and capital to drive industry transformation.
• Driving Web3 and DAO Growth: Sequoia’s focus on decentralized organizations reflects its belief in the next phase of internet economics.
• Commitment to Long-Term Value: Sequoia’s emphasis on sustainability and innovation distinguishes it in a volatile market.

8. Conclusion: Sequoia Capital’s Blockchain Vision

Sequoia Capital has seamlessly transitioned from traditional tech investment to becoming a key player in blockchain. Through its global resources and long-term strategies, it continues to drive Web3 innovation.

As DeFi, NFTs, DAOs, and the Web3 ecosystem mature, Sequoia Capital is poised to lead the blockchain revolution, shaping the future of decentralized technology and the digital economy.