Enterprise capital agency Sequoia Capital revealed that its funding in FTX is nugatory, as it’s marking the funding right down to zero, in line with a Nov. 10 observe despatched to its restricted companions.
Right here is the observe we despatched to our LPs in GGFIII concerning FTX. pic.twitter.com/Cgp1Yxk1pz
— Sequoia Capital (@sequoia) November 10, 2022
Sequoia continued that its publicity to FTX is proscribed. In accordance with the main funding agency, its $150 million funding within the World Progress Fund III is lower than 3% of the fund. Other than that, the loss has been offset by beneficial properties of $7.5 billion from the fund.
Moreover, the $63.5 million invested into FTX and FTX US via the Sequoia Capital World Equities Fund makes up lower than 1% of the fund’s portfolio.
Sequoia’s invested in FTX in 2021 when the alternate raised $900 million at a valuation of $32 billion. The VC agency claimed it ran its due diligence on the alternate earlier than investing; on the time, FTX’s income was roughly $1 billion.
It added:
“We’re within the enterprise of taking dangers. Some investments will shock to the upside, and a few will shock to the draw back.”
The choice to markdown its funding to zero comes after Binance refused to accumulate the struggling agency, citing funds mismanagement and regulatory scrutiny.
In the meantime, studies have revealed that Canada’s third-largest pension fund, The Ontario Lecturers’ Pension Plan, was uncovered to the struggling agency.
Sequoia is among the most distinguished enterprise capital corporations within the crypto area. The agency has devoted funds focused on the trade and has invested in a number of crypto firms like Fireblocks, Magic Eden, Filecoin, and so forth.
