![]() However, things soon took a turn for the worse in November of 2022 when FTX ultimately went bankrupt. Up until earlier this year, this proved to be a good investment as FTX was valued at $32bn at the beginning of 2022. Attracted to a founder that was seen as a visionary and amid the boom in crypto investments, Sequoia neglected typical corporate controls for investments this size such as external board oversight. Founder and CEO Sam Bankman-Fried’s personality also attracted investors, portraying a genius multitasking persona.Ĭonsequently, in July 2021, Sequoia Capital invested $214m into FTX which was valued at $18bn at the time. Products such as future contracts like “Trump 2020” which allowed traders to bet on the US election outcome and their unique margin collateral loan wallets that offered a simpler way for traders to manage which wallets they used as collateral, set the company apart from its competition. FTX’s success was largely due to it being easier to use than alternatives and catering to an array of diverse audiences. Therefore, even compared to other crypto exchanges in the midst of the bull market, FTX was one of the fastest-growing crypto exchanges in the industry, and a target for VCs such as Sequoia. It soon became the the third largest crypto exchange by volume, peaking at $807m of daily trading volume in September of 2021 and representing a 25x year on year growth from April 2020. FTX was an emerging cryptocurrency exchange founded in 2019 and based in the Bahamas due to its favorable regulatory environment. Therefore, during the cryptocurrency boom in 20, Sequoia was quick to invest in FTX. In fact, Sequoia focuses mainly on seed-, early-, and growth stage technology companies. ![]() Specializing in technology and innovation, the VC was an early investor in many well known tech firms such as Apple, Oracle, Youtube, Instagram, Zoom, Google and more. It is known for backing companies that now represent $1.4tn of the total combined value of the stock market as of 2022. Sequoia Capital is an American VC firm founded in 1972 in California, when the term “Silicon Valley” was just 2 years old. Now, amid a geopolitical crisis and a downward-trending stock market, some in the industry say the overheated venture capital climate is finally beginning to cool down. According to Coatue, one of a new band of “crossover” investors that moved from the public markets into the VC sector, $1.4tn found its way into promising growth companies globally last year, half of it in the form of VC and half through IPOs. The flood of money into the private markets was matched by a comparable surge of IPOs. Instead, the opposite happened, and the pandemic pushed the market into one of the strongest bull periods on record. When pandemic-induced lockdowns started in March 2020, partners at some Venture Capital (VC) firms became increasingly concerned about an overdue correction. By Elena Cavallaro, Roxane Kohler, and Vittorio Filippini Introduction
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |