Sequoia Capital: Invested a total of $213.5 million in FTX and FTX.US, currently being written down to 0

ChainCatcher news, Sequoia Capital has released a statement to LP regarding its Global Growth Fund III (GGFIII) about FTX, to share the latest developments in its investment in FTX. The statement indicates that liquidity tightening has brought repayment risks to FTX, and the full nature and extent of these risks remain unclear. Based on the current understanding of the situation, Sequoia Capital is reducing its investment in FTX to $0.

The statement claims that Sequoia Capital has limited exposure to FTX, but has investments in FTX.com and FTX.US within GGFIII. FTX is not among the top ten positions of the fund, with a cost basis of $150 million accounting for less than 3% of the fund's committed capital. The $150 million loss is offset by $7.5 billion in realized and unrealized gains, thus the fund remains in good standing. Additionally, the SCGE fund invested $63.5 million in FTX.com and FTX.US, which represents less than 1% of the SCGE fund's portfolio as of September 30, 2022 (based on fair value).

Sequoia Capital stated that a rigorous due diligence process was conducted when investing in FTX, with data released in August 2022 showing that FTX generated approximately $1 billion in revenue and over $250 million in operating income in 2021, the year of its investment. The current situation is evolving rapidly, and further updates will be communicated in a timely manner. (source link)