How much did top institutions like Temasek and Paradigm lose in FTX?

Written by: Forbes

Compiled by: TechFlow

The crisis at FTX has not only left customers "in distress," but investors have also suffered heavy losses. FTX's peak valuation was $32 billion, with total funding reaching $1.8 billion, including many top international venture capital firms. Who are the main "losers"?

Forbes has a list of FTX shareholders, which SBF sent to Forbes during the reporting of the Forbes 400 list in August. Here are the main investors:

Sequoia Capital

FTX Shares: 1.1%

Estimated Investment Amount (in FTX only): $200 million

Value at peak in January 2022: $350 million

This Silicon Valley venture capital fund, known for investing in tech giants like Apple, Google, and Airbnb, invested over $200 million in FTX. On Wednesday, Sequoia Capital shared a letter on Twitter stating that it would write down its investment in FTX to zero.

However, according to a report released by The Information on Thursday, Alameda Research and the Bankman-Fried-backed venture capital fund FTX Ventures invested "$200 million" into funds operated by Sequoia and two other firms.

Earlier this year, Sequoia's investment in FTX peaked at a value of $350 million. In a letter to investors, Sequoia stated that its FTX equity accounted for less than 3% of a single fund's committed capital, and the $150 million loss from this fund was offset by approximately $7.5 billion in realized and unrealized gains.

Temasek

FTX Shares: 1%

Investment Amount: $205 million

Value at peak in January 2022: $320 million

Temasek, a Singapore government-owned investment company, is the second-largest external investor in FTX, holding 7 million shares. A Temasek spokesperson told Reuters on Wednesday that its $320 million stake is nearing worthless, and they are "monitoring developments" and working with FTX as shareholders.

Paradigm

FTX Shares: 1%

Investment Amount: $215 million

Value at peak in January 2022: $315 million

Paradigm is an investment firm "focused on supporting the future of crypto/Web3 companies and protocols." The firm invested in the B and C rounds of funding for the exchange, holding nearly 7 million shares of FTX as of August. "Sam and FTX have a bright future," said Paradigm co-founder Matt Huang in July 2021, "Paradigm is excited to be a part of it."

According to The Information, Alameda Research also invested at least $20 million in Paradigm.

Ontario Teachers' Pension Plan

FTX Shares: 0.4%

Investment Amount: $80 million

Value at peak in January 2022: $125 million

The Ontario Teachers' Pension Plan, which manages the retirement funds of 333,000 teachers in Canada, invested a total of CAD 95 million in FTX and FTX US at the end of 2021 and early 2022. "While there is uncertainty about FTX's future," the Ontario Teachers' Pension Plan stated in a release, "any financial loss from this investment will have a limited impact on the plan, as this investment accounts for less than 0.05% of our total net assets."

Additionally, there may be other unnamed large investors who could face significant losses.

The remaining investors who bought $1 billion in FTX's B round in June 2021 hold 3.5% of the exchange. These investors include entities associated with billionaires Paul Tudor Jones, Daniel Loeb, and Israel Englander, as well as companies like Tiger Global Management and SoftBank, which also participated in FTX's C round of funding in January and likely became major shareholders.

According to the capitalization table, this round of investors (excluding Temasek and Paradigm) holds nearly 1% of FTX, with paper losses exceeding $270 million.

Most Affected: FTX Employees

According to the capitalization table, as of August, the company's option pool held 20,858,124 shares, accounting for about 3% of FTX. In January, FTX employees held shares worth up to $950 million, which may now be worthless.

Will they get this money back?

SBF clarified his priorities. According to a series of tweets he posted on Thursday, first are the users, then he will focus on the investors, and then SBF said he would take good care of the employees.