American venture capitalist Alfred Lin, a partner at Sequoia Capital, confirmed that the company’s multi-million dollar investment in the now-bankrupt FTX at $213.5 million was the right move.
said LinAt Bloomberg’s Tech Summit, if he were tasked with reevaluating FTX for the first time, Sequoia would likely make the same investment decision. “We look at the work we do in 15 different ways. [… ] We will likely make another investment.”
Sequoia Capital has approximately $85 billion in assets under management. It has invested in several major technology companies and crypto businesses.
Sequoia has invested $213.5 million in FTX and FTX US through two funds, with Global Growth Fund III holding $150 million in FTX, or 3% of the fund’s capital, while Capital Global Equities Fund has invested $63.5 million in FTX. both companies This represents less than 1% of the total investment portfolio.
Sequoia sent a letter to partners last November. It announced that it had marked both investments in crypto exchanges as total losses after FTX closed. Some investments will surprise the upside. And some surprise the downside.”
Lin shared his vision at the Bloomberg event, saying that Sequoia’s investment relies on founder trust and takes calculated risks. He added that investments sometimes fail. But despite the collapse of FTX and the loss of capital, Lin said the company was “Still excited about the idea of crypto.”
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