Sequoia Capital has reduced its crypto-focused venture fund by 66% due to changing market conditions. The digital assets-focused fund now stands at $200 million, down from $585 million. Additionally, Sequoia has halved its ecosystem fund, which targets smaller funds and individual investors, from $900 million to $450 million. The venture capital firm has been active in the web3 space since 2014 and has invested in leading digital asset companies such as Fireblocks. Sequoia now plans to concentrate on early-stage opportunities, particularly seed-stage investments. Despite the industry-wide trend of declining funding for web3 startups, some projects continue to attract venture capital firms that view the bear market as an opportunity.