How Did Elite Investors Lose Billions in the FTX Collapse?
FTX attracted capital from the world's most prestigious venture firms and hedge funds before its sudden bankruptcy. This video examines the high-profile backers who saw their investments vanish as the exchange's valuation plummeted from $32 billion to zero.
Between its 2019 inception and its collapse, FTX secured $1.8 billion in funding, reaching a peak valuation of $32 billion. When the firm filed for bankruptcy, major institutional players were forced to write down their stakes to nothing, resulting in the total loss of hundreds of millions of dollars.
The list of affected entities includes prominent names such as Sequoia Capital, SoftBank, BlackRock, Tiger Global, and Temasek Holdings. Other notable investors caught in the fallout include Paradigm, which was established by a former associate of Sequoia, alongside firms like NEA, IVP, and Insight Partners.
