NEW: Sequoia Capital says it did proper due diligence on FTX
Sequoia is arguably the most successful venture capital firm ever, having made early investments in such companies as Apple, Google and Airbnb. This episode is a rare black eye, leaving both the firm and its limited partners scrambling for information.Its $150 million of exposure to both FTX and FTX.US in its third global growth fund represents less than 3% of that fund's total capital commitment. Sequoia also has another $63.5 million investment via a crossover fund called SCGE.
Sequoia conducted adequate due diligence at the time of investment, in a profitable company that had around $1 billion or revenue and $270 million of operating income.Axios has learned that Sequoia and other members of an FTX advisory board held a call today with FTX CEO Sam Bankman-Fried, but that they still don't have access to detailed balance sheet data.
Most FTX investors with whom Axios has spoken expect to write the value of their shares down to zero.
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