News

Sequoia Capital Apologizes To Investors For $150 Million FTX Loss

Venture capital fund Sequoia Capital has apologized to investors for the $150 million loss with FTX and it will improve its appraisal for future investments.

As reported by the Wall Street Journal, during a conference call with investors on November 22, Sequoia Capital Partners apologized to investors for a $150 million loss when they invested in FTX.

Perhaps this is the first time a venture capital fund with a lot of experience has to regret its decision. Roelof Botha, the company’s global leader, opened the call and he and his colleagues repented for supporting the company, with a $214 million investment in FTX.com and FTX .US on two funds.

Roelof Botha

Sequoia has limited exposure to FTX, but has investments in FTX.com and FTX.US in GGFIII. FTX is not in the top 10 of the fund, and its $150 million expense base represents less than 3% of the fund’s committed capital. The $150 million loss was offset by realized and unrealized gains of $7.5 billion, so the fund performed well.

Sequoia Capital Partners stated that the company has stated that it has been misled by the SBF and will improve its investment due diligence process in the future. Additionally, the company will hire a Big Four accounting firm to audit the financial statements of the early-stage startups it invests in.

As previously reported, Sequoia said it has invested a total of $213.5 million in FTX and FTX US, and has reduced these investments to zero.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

Coincu News

Victor

Recent Posts

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

6 minutes ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

8 minutes ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

36 minutes ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

4 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

7 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

9 hours ago

This website uses cookies.