Qubit: Sequoia Capital on FTX

Sequoia tweeted a copy of their letter to LPs on FTX this evening. They marked down their investment to $0.

Writing off a 3% position may be small but $150m is $150m.

Admittedly, you have to admire how quickly they reacted to the problem and how transparent they are in doing so.

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“Based on our current understanding, we are marking our investment down to $0.

Sequoia Capital’s exposure to FTX is limited. We own FTX.com and FTX US in one private fund, Global Growth Fund III. FTX is not a top ten position in the fund, and our $150M cost basis accounts for less than 3% of the committed capital of the fund. The $150M loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape.”

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Source:

Sequoia Capital @sequoia

Here is the note we sent to our LPs in GGFIII regarding FTX.

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