3 ms·
Still crickets from the Sequoia partners (Alfred Lin, Michelle Bailhe) who backed and hyped FTX and SBF.
by clpm4j 4y ago
Still crickets from the Sequoia partners (Alfred Lin, Michelle Bailhe) who backed and hyped FTX and SBF.
- _bqrf 4y agoNot silence. Sequoia posted a letter declaring that their FTX investment is $0 and that this is not a notable fraction of their portfolio. FTX may have been a theoretically sound investment for Sequoia because many venture investments are marked to $0, and FTX got to huge-or-zero much faster than any other investment. A company that slowly goes to $0 is equally bad but worse for time-value. What hurts my brain is that theoretically this investment strategy is sound, but the implementation of it looks like: FTX. It's horrific. It's like total war logic. Logically it works, probabilistically it's reasonable, living it is grotesque and insane.
- clpm4j 4y agoYeah I saw that, but I meant directly from Alfred or Michelle (both had been vocal advocates on Twitter prior to this blowup).
- totalZero 4y ago> A company that slowly goes to $0 Either way, the forward is 0. I'd rather see a company run itself aground by paying its employees and slowly bleeding money than to see it fail due to mis-valuation of its holdings. The former is unfortunate, but the latter is an embarrassment for all stakeholders.