Venture capital firm Sequoia Capital tweeted a letter sent to partners on November 10, revealing that it had set the $213.5 million investment in FTX and FTX US to zero, citing total losses.
Sequoia also assured partners that FTX’s losses would not hurt the fund. It said the fund had less than 3% of the fund’s investment in FTX.
“The loss of $150 million (basic cost) will be offset by ~7.5 billion of actual and unrealized gains in the same fund. So the fund is still in good shape.”
The company also reportedly invested $63.5 million in FTX and FTX US from the Sequoia Capital Global Equities Fund. Such holdings account for less than 1% of the total portfolio.
For investment decisions, Sequoia reassures partners that it has thoroughly researched every investment, and FTX is no different:
“During our investment in FTX, we implemented a rigorous due diligence process in 2021, the year of our investment, with FTX generating approximately $1 billion in revenue. and operating income of more than $250 million.”
Sequoia Capital currently has approximately $85 billion in assets under management. and has previously invested in tech giants like Apple and Google and recently Airbnb.
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