FTX Investment Was Correct Decision, Claims Sequoia Partner Alfred Lin

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Following the sudden crash of FTX change, many companies tied to the platform additionally suffered, and plenty of extra who had invested within the platform concluded that their investments had been the unsuitable transfer. 

However, American enterprise capitalist, Alfred Lin, who can also be a companion at Sequoia Capital, has stood by the choice.

Sequoia misplaced over $213 million by investing in FTX

Sequoia invested $213.5 million into the now-bankrupt change, however Lin mentioned in a current speak that the funding was the correct transfer on the time. 

More than that, he mentioned that he would advocate it once more, if he had been requested to judge FTX for the primary time.

“I looked at the work we did in 15 different ways,” mentioned Lin. 

“We probably would have made the investment again.” 

His words indicate that there was nothing wrong with FTX or how it operated when the investment decision was made. At least according to the data that Sequoia had about the platform. 

There were no suspicious activities or red flags of any kind based on what the company managed to gather.

Sequoia Capital holds around $85 billion in assets under management and invested in multiple major technology companies. 

In addition to that, it also invested in a number of crypto companies. It used two of its funds to spend money on FTX and FTX US.

The Global Growth Fund III held a $150 million investment into the now-bankrupt crypto exchange, which represents around 3% of the fund’s total capital. 

The other fund, Capital Global Equities Fund, invested 1% of its portfolio — around $63.5 million — into both FTX and FTX US.

After FTX crashed, the company sent a letter to its partner, calling its FTX investments “complete losses.” 

However, the company noted that it is in the business of taking risks, saying that some investors will surprise to the upside and some to the downside.

Lin stressed that Sequoia’s investment thesis relies on trusting founders and taking calculated risks. Sometimes, the investments fail to deliver, which is simply a part of the business.

Sequoia is still not discouraged from pursuing crypto investments

The positive thing is that the negative experience that the firm and its partners had with FTX did not discourage them from pursuing crypto investments.

 Lin noted that the venture capital firm’s “still very excited about the concept of crypto.”

This is even more important given the fact that the FTX collapse created extra issues for Sequoia than one. 

Of course, the lack of its funding was a problem, but additionally one thing that the corporate knew find out how to take care of. 

However, within the aftermath of the change’s crash, among the bankrupt change’s customers are suing the financiers of the platform. 

Sequoia is amongst them, along with Paradigm and Thoma Bravo.

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