Venture capital firm Sequoia Capital tweeted out a letter sent to its partners on Nov. 10 revealing the firm had marked its $213.5 million investments in FTX and FTX US down to $0, claiming them as a complete loss.
The letter said that the crisis facing FTX has “created a solvency risk” but claimed its exposure to the exchange is “limited” in its Global Growth Fund III, where its cost basis for the FTX portion of the fund totaled $150 million.
Here is the note we sent to our LPs in GGFIII regarding FTX. pic.twitter.com/Cgp1Yxk1pz
— Sequoia Capital (@sequoia) November 10, 2022
Sequoia also reassured its partners that the writing off of FTX wouldn’t have a detrimental impact on the fund, saying it accounted for less than 3% of the capital committed to it, adding:
“The $150M loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape.”
The venture capital firm also reported to have invested $63.5 million into FTX and FTX US from its Sequoia Capital Global Equities Fund, however, the holdings represented less than 1% of the entire portfolio.
Sequoia’s investments into the now cash-strapped cryptocurrency exchange came as part of FTX’s $900 million Series B investment round in July 2021 — which was the largest crypto investment ever recorded at the time.
As for the investment…
