Sequoia LPS Sequoiakokalitchevaaxios is a very active investment firm in the Silicon Valley and has a number of great funds that are open to investors. They are currently launching a new fund that will be targeted at investing in the technology sector. This news has a lot of investors curious about how it will perform.
A few weeks ago, FTX, a crypto exchange founded by Sam Bankman-Fried, announced it was filing for bankruptcy. The news was devastating to crypto investors and drew comparisons to previous business meltdowns.
Withdrawing Customer Funds
Sequoia LPS Sequoiakokalitchevaaxios had a valuation of $32 billion when it went down. But that valuation was shattered when it began withdrawing customer funds. According to the Securities and Exchange Commission, FTX had improperly used customer money to pay for risky investments.
After Sequoia LPS Sequoiakokalitchevaaxios filed for bankruptcy, it contacted Binance, one of the biggest crypto exchanges. Binance offered a loan to save the exchange. However, Binance later pulled the offer.
FTX owes about 50 creditors a combined $3 billion. Many of its customers have lost all of their money. They are not sure whether they can recover their assets. If they do, however, it may not be enough to meet their obligations.
Founder Sam Bankman-Fried
FTX’s founder Sam Bankman-Fried, once a promising crypto entrepreneur, has been accused of widespread fraud. He has been arrested, is facing eight criminal charges, and is scheduled to testify before a House Financial Services Committee on Dec. 13. In addition to the fraud charges, the Justice Department has opened an investigation into FTX’s ties to Bankman-Fried’s crypto empire.
Last weekend, Bankman-Fried shared financial records with other FTX executives. These records showed that the company had a “back door” in the books.
Largest Private Deals
One of the largest private deals in the history of Silicon Valley was the Facebook / WhatsApp deal, valued at $22B in early 2019 dollars. The duo was tasked with merging the two social platforms and creating an online social network with a combined user base of over a billion users. That’s a lot of mouths to feed. While the merger is not yet complete, it’s expected to close early next year. Meanwhile, a recent report suggests that WhatsApp was the most popular mobile app in the world.
Facebook / WhatsApp Deal
Of course, the Facebook / WhatsApp deal is just the latest in a string of acquisitions that have boosted the company’s valuation to more than $26 billion. During the past decade, the VC empire has invested more than $400 million in Meituan, the Chinese e-commerce juggernaut. Indeed, the aforementioned Meituan is a great example of the VC juggernaut’s ability to be both a good and bad corporate citizen. And if you’re a fan of tech, a great place to invest your hard-earned money is Silicon Valley. After all, it’s a hive of activity. So, you better know where you’re going. For the savvy VC, a smart move can pay off big time. If you’re looking to make an informed decision, the smartest move may be to stick with the aforementioned incumbents.
The Sequoia empire is no stranger to accolades. The world’s oldest venture capital firm has made a name for itself with investments in companies such as Google, Facebook and Apple. Its latest fund, the Sequoia Expansion Fund, is slated to make its mark on the U.S. and Europe.
As such, it’s no wonder that the company has been able to find its way into the boardrooms of some of the most notable firms in tech. Indeed, the company’s alums include co-founders of Facebook, Twitter, and Amazon. But its high-profile portfolio also includes startups such as Square and Airbnb. Of course, the company isn’t without its share of headaches. A recent phishing scandal involving an email containing a string of gibberish has taken its toll. However, the hiccups haven’t dampened the firm’s ambitions. Just last month, the company announced its biggest fund-raising round in more than a decade.
And, while there are a ton of other venture capital firms in town, Sequoia is unquestionably the most recognizable. It has also gotten the most press, both good and bad, as a result. To that end, the company has announced plans to become an investment adviser as well as a registered investment adviser. This means the company’s biggest shareholders will be protected from the chops of their biggest rivals.