FTX Exposure Limited, said venture capital giant Sequoia Capital

In a note to limited partners, Sequoia Capital said it has invested just over $200 million in FTX through two funds.

Venture capital giant Sequoia Capital reassures investors that the company remains largely unaffected by the introduction of crypto exchange giant FTX and the broader decline in financial markets. digital product.

In a note to Limited Partners posted on the company’s Twitter page, Sequoia said that exposure to FTX is very limited and that any money it loses is offset by billions of dollars in profits.

Sequoia said it has invested $150 million in FTX.com and FTX.us through its Global Growth III fund and $63.5 million in its U.S. exchange and division through its SCGE Fund. These investments represent 3% of the Global Growth III fund and less than 1% of the SCGE fund.

The $150 million loss was offset by approximately $7.5 billion in realized and unrealized gains in the same fund, so the fund performed well,” Sequoia wrote in a note.

The VC Fund noted that in 2021, when it made the investments, FTX generated $1 billion in revenue and $250 million in operating income.

FTX investors include Softbank, Temasek Holdings, Teachers’ Retirement Plan Ontario, Race Capital and Lightspeed Venture Partners, among others.

“We are in the business of taking risks. Some investments will surprise on the upside, and some will surprise on the downside,” Sequoia wrote. “We do not take this responsibility lightly and conduct extensive research and due diligence on every investment we make.”

FTT’s exchange token is currently trading at $2.40, down 58% on the day.

Read more: Bitcoin and crypto here to stay despite market turmoil: Community

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