Sequoia Capital has parted ways with two crypto investors amid a VC team reshuffle that saw five partners recently leave the venture capital firm.
Daniel Chen, who describes himself on Twitter as a “crypto maxi,” and junior partner Michelle Fradin, one of Sequoia's FTX investors, left the firm recently, according to a note sent to investors yesterday, Bloomberg reported. Long-term partner Michael Moritz, Mike Vernal and Kais Khimji are also leaving.
Fradin and Chen were heavily involved in the firm’s crypto investments. The move comes after Sequoia suffered significant reputational damage following FTX's 2022 collapse, resulting in a $213.5 million loss for the firm as the investment became worthless, primarily affecting its global growth fund. However, the firm said the cost basis of the investment accounted for “less than 3% of the committed capital of the fund,” at the time.
Other key departures
Michael Moritz, a partner with the firm for nearly 40 years, has also stepped away to concentrate on Sequoia Heritage, a wealth management business he helped establish. The firm oversees over $15 billion in funds, a significant portion of which belongs to Moritz's family foundation, Crankstart.
Additional exits include partners Kais Khimji and Mike Vernal. Khimji primarily focused on later-stage companies. Vernal is set to take a sabbatical.
In March, Sequoia participated in a $7.5 million seed fundraise for crypto security and custody startup Turnkey, alongside Variant and Coinbase.
Sequoia Capital's total venture assets stand at over $50 billion, according to an SEC filing.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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