Major venture capital firm Sequoia Capital has written down the value of its investment in the beleaguered crypto exchange FTX, to zero. Notably, the company was part of the investors who participated in FTX’s $900 million funding round in July 2021, which brought the exchange’s valuation to $18 billion at the time.
Sequoia invested $150 million in FTX and FTX.US via its Global Trust Fund III, noting that the investment accounted for only 3% of the total capital in the fund. The venture capital firm reassured LPs that the fund was in good financial condition as it has realized and unrealized gains of $7.5 billion. Sequoia further said it always conducted a thorough diligence process before investing and did the same for FTX. The company was part of 60 investors who raised $900 million in FTX’s Series B funding in July 2021. https://cryptopotato.com/sequoia-says-investment-in-ftx-does-not-negatively-impact-its-fund/