“We are in the business of taking risk. Some investments will surprise to the upside, and some will surprise to the downside.”
That’s noted venture capital firm Sequoia Capital on its ill-fated investment in the crypto exchange FTX, which it has now marked to zero. It said it’s taking a $150 million loss on its investment, but that the fund that has the FTX investment in its portfolio has some $7.5 billion worth of gains, “so the fund remains in good shape.” Another fund invested nearly $64 million, representing less than 1% of its portfolio.
Sequoia is one of several big name firms that had backed FTX. On social media, users will quick to note the story — told on Sequoia’s own web site — that staffers at the venture firm were excited by the pitch by founder Sam Bankman-Fried, during which he was playing a video game.
