The mea culpa tour for Sequoia Capital, who lost $150 million in the FTX blowup, continues.
The venture capital firm reportedly apologized to its fund investors yet again last Thursday in a conference call, vowing “to improve its due diligence process for future investments”, Bloomberg wrote this week, citing people familiar with the matter.
Bloomberg called it a “rare moment of contrition for Sequoia”, who has had a successful track record investing in companies like Apple, Google and Airbnb.
And what a surprise: the firm said that now, post-FTX blowup, it “would be able to push harder to have even early stage startups’ financial statements audited by one of the Big Four accounting firms”, Bloomberg wrote.
If only someone had thought about due diligence before FTX blew up…
Regardless, recall that back on November 10, we reported Sequoia had written down the entire value of its stake in FTX, a little over $210 million.
“We are in the business of taking risk,” Sequoia wrote in a message to investors seen by Bloomberg. “Some investments will surprise to the upside, and some will surprise to the downside.”
For a larger list of investors that lost money in FTX, consult our November 10, 2022 writeup here.
Here is the note we sent to our LPs in GGFIII regarding FTX. pic.twitter.com/Cgp1Yxk1pz
— Sequoia Capital (@sequoia) November 10, 2022