Sequoia’s Doug Leone Addresses FTX Fallout
November 18, 2022
Billionaire Doug Leone, Sequoia’s global managing partner, said there wasn’t a lot his agency Sequoia Capital might do to predict the solvency disaster at FTX.
Without bringing up FTX by means of title, Leone mentioned Sequoia had performed cautious due diligence on FTX.
Sequoia wrote down the value of its stake in FTX to zero last week after Binance’s withdrawal of an offer to rescue the company left it facing bankruptcy.
Leone also said FTX’s implosion may affect its investing principles in the near term.
“For the next three to six months, we’re going to dream a little less” he said.
In a since-deleted article on Sequoia’s website praising FTX founder SBF, it is revealed he was playing League of Legends while on a Zoom call with Sequoia’s partners.
SBF stepped down as the FTX’s CEO last Friday as the company filed for Chapter 11 bankruptcy protection.