- VC company, Sequoia stated that the system was jotting down the amount of its financial investments in FTX.
- Sequoia Funding spent around $214 million in the FTX system in 2014.
Sequoia Funding, the US-based financial backing company, has actually dropped its FTX financial investment to absolutely no bucks. In a current letter to capitalists, Sequoia Funding divulged that the system was jotting down the whole worth of its holdings in the FTX exchange. The VC system has actually clarified its newest choice by pointing out FTX’s “liquidity crunch” and also “solvency risk” as aspects.
Sequoia specified:
We remain in business of taking threat. Some financial investments will certainly amaze to the benefit, and also some will certainly amaze to the drawback.
In 2014, Sequoia Funding spent roughly $214 million in FTX’s worldwide and also United States companies.
An Unexpected Loss for FTX
The monetary system, Sequoia Funding disclosed that the company has actually spent $150 million in FTX.com and also FTX.us with its Worldwide Development III fund. It likewise spent $63.5 million in the exchange and also its United States department with its SCGE Fund. These holdings make up 3% of the Worldwide Development III fund and also much less than 1% of the SCGE fund.
The VC company included:
The $150M loss is countered by ~$ 7.5 B in recognized and also latent gains in the exact same fund, so the fund continues to be healthy.
The company furthermore pointed out that it has actually carried out a “rigorous diligence procedure” throughout its financial investment in the FTX. The exchange has actually produced around $1 billion in profits and also even more than $250 million in running earnings in 2021.
Furthermore, in the declaration, the system assured its capitalists that the business will certainly remain to perform considerable research study and also “thorough diligence” in the future.
