Sequoia Capital's Alfred Lin. Photo by Getty Images
Nov. 22, 2022 12:53 PM PST

Sequoia Capital’s Alfred Lin made a name for himself as a loyal confidant to the tenacious, often-doubted founders of companies like DoorDash and Airbnb, a commitment that helped catapult him to the No. 1 spot on Forbes’ list of top venture capitalists. Then Sam Bankman-Fried, the founder of FTX, entered his life.

The spectacular flameout of the cryptocurrency exchange over the past couple of weeks has wiped away the $214 million that entities connected with Sequoia put into the firm and blemished the reputation of one of Silicon Valley’s most esteemed venture firms. In a sign of how humbling the saga has been for Sequoia, Lin and the firm’s U.S. leader Roelof Botha and crypto-focused partner Shaun Maguire, on Tuesday held a call with the firm’s limited partners to apologize for the firm’s investment in FTX and to share the lessons they’ve learned so far amid FTX’s bankruptcy proceedings, according to a person with direct knowledge of the matter.

Lin told the limited partners that Bankman-Fried had misled Sequoia about the relationship between FTX and Alameda Research. Moving forward, Sequoia partners said they would be more cautious about making substantial investments in companies whose founders they did not have a longstanding relationship with for investments made out of its global growth and expansion funds.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Data Point google
Where Google Has Grown
Alphabet has doubled the headcount in its Google Cloud unit since early 2019, according to data obtained by The Information, outstripping Alphabet’s overall hiring growth. The rapid growth helps explain why Google Cloud’s losses continue to widen even as its revenue grows rapidly. Google’s hardware unit and YouTube also each roughly doubled headcount between the first quarter...
Latest Briefs
 
Crypto Lender BlockFi Files for Bankruptcy
Yahoo Takes 25% Stake in Taboola in Ad Partnership
U.S. Bans Sale of Telecom Equipment from Huawei, ZTE
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Clark Miller
The Big Read
‘I’m Licking My Chops. I Know It’s Going Down’: The Pissed-Off Crypto Traders Who Predicted—and Profited From—the FTX Implosion
Ishan Bhaidani had been patient for over a month, waiting for blood in the water. Now was his moment.
Sequoia Capital's Alfred Lin. Photo by Getty Images
FTX Collapse Tarnishes Sequoia’s Reputation, Prompts Apology
Sequoia Capital’s Alfred Lin made a name for himself as a loyal confidant to the tenacious, often-doubted founders of companies like DoorDash and Airbnb, a commitment that helped catapult him to the No.
Sam Bankman-Fried. Photo by Bloomberg.
The Takeaway crypto media/telecom
The Press Failure That Led to FTX
As the crypto currency contagion spreads, there is a tough truth about the press’s role in the crisis that is becoming crystal clear.
Art by Clark Miller.
Gift Hunting culture
The Information’s Top Tech-Adjacent Gifts for 2022
After the roller-coaster ride of the past month, everyone needs a little retail therapy. So, in honor of Black Friday and the upcoming holiday season, we’ve put together our annual gift guide, asking The Information’s staffers to share their favorite tech and tech-adjacent purchases of the last year.
Bob Chapek via Bloomberg
Opinion entertainment media/telecom
It’s Not Just Disney
Parqor is part of The Information’s newsletter network. To receive it in your inbox every Monday, Wednesday and Friday, sign up here .
Alfred Lin. Photo by Getty Images.
Dealmaker venture capital
The Star Sequoia Investor Behind FTX’s Collapse
Last week, Sequoia Capital partner Doug Leone compared FTX’s blowup to childbirth. “Like having a child, you forget the pain of having that child three months later, a year later,” he said on stage at a conference in Europe.