Ribbit

Galaxy

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Venture capital firm Sequoia Capital stands to make approximately $100 million following Stripe’s $1.1 billion purchase of Bridge. 
The substantial return is particularly notable in the crypto sector, where venture funding has significantly declined since its peak in 2022. 
<h2 id="other-investors-also-set-for-major-returns">Other Investors Also Set for Major Returns</h2> 
According to <a href="https://www.bloomberg.com/news/articles/2024-10-28/sequoia-to-rake-in-more-than-100-million-from-stripe-s-crypto-acquisition?utm_source=telegram&amp;utm_content=crypto&amp;utm_medium=social&amp;embedded-checkout=true" target="_blank" rel="noopener" data-wpel-link="external">reports</a> from Bloomberg, Sequoia invested $19 million in Bridge during its Series A funding round that took place less than a year ago. The amount translates to 16% of the stablecoin platform’s ownership, which, when liquidated, could result in a $100 million windfall. 
Other firms that invested in Bridge also stand to make significant returns. Ribbit Capital, which holds close to 10% of Bridge, expects a return similar to Sequoia’s. Bedrock Fund Management and Index Ventures hold about 6% each, and Haun Ventures maintains a 4% stake in the company. 
Stripe <a href="https://cryptopotato.com/stripe-buys-stablecoin-platform-bridge-in-record-breaking-1-1b-deal-report/" target="_blank" rel="noopener" data-wpel-link="internal">announced</a> its finalized $1.1 billion bid for Bridge on October 20. The platform, co-founded by Sean Yu and Zach Abrams, offers software tools for businesses to process payments in stablecoins.&nbsp;However, the transaction is still pending regulatory approval and is expected to close within the next several months. 
The billion-dollar deal comes just half a year after John Collison, co-founder of Stripe, <a href="https://x.com/collision/status/1783559623511011535" target="_blank" rel="noopener" data-wpel-link="external">promised</a> that the company would support stablecoins by mid-2024. His firm’s takeover of Bridge ranks as one of the largest in the crypto sector to date. 
<h2 id="crypto-vc-funding-dropped-20-in-q3-2024">Crypto VC Funding Dropped 20% in Q3, 2024</h2> 
According to an October 15 <a href="https://www.galaxy.com/insights/research/crypto-blockchain-venture-capital-q3-2024/" target="_blank" rel="noopener" data-wpel-link="external">report</a> from Galaxy Digital, crypto venture funding fell 20% in the third quarter of 2024 to $2.4 billion. This drop was accompanied by a 17% decrease in deals, with only 478 reported in that period. 
Analysts from Galaxy Digital attributed the downturn to a “barbell market” in crypto funding. In this scenario, investors have favored high-profile cryptocurrencies like Bitcoin and high-risk meme coins, often overlooking mid-sized projects seeking funding. 
The report also noted that strong <a href="https://cryptopotato.com/bitcoin-etfs-inflows-skyrocket-to-4-month-high-as-total-aum-taps-massive-milestone/" target="_blank" rel="noopener" data-wpel-link="internal">demand</a> for spot Bitcoin ETFs from major investors, such as pension and hedge funds, may have shifted focus away from early-stage crypto venture capital investments. 
However, despite the funding dip, Stripe’s interest in Bridge was reportedly triggered by the latter’s heightened growth in recent months, which saw it hit a $14 million run rate. Analysts often use this metric to project a company’s future performance using its current financial data. 
The post <a href="https://cryptopotato.com/sequoia-capital-to-earn-100m-from-stripes-1-1b-acquisition-of-bridge/" rel="nofollow">Sequoia Capital to Earn $100M From Stripe’s $1.1B Acquisition of Bridge</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

Sequoia Capital to Earn $100M From Stripe’s $1.1B Acquisition of Bridge

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