Sequoia Capital, which holds a 16% stake in Bridge, a stablecoin platform, has the potential to earn more than $100 million as a result of Stripe’s $1.1 billion acquisition of the company.
Bloomberg reported on October 29, citing individuals with knowledge of the matter, that Sequoia Capital contributed $19 million to the crypto firm’s Series A round, which transpired within the previous year.
Sequoia Capital and other VCs to receive Investment in Bridge
Sequoia Capital, Ribbit Capital, Haun Ventures, Index Ventures, and Bedrock Fund Management are among the other venture capital firms expected to receive hundreds of millions of dollars in windfalls from their investments in Bridge.
Sequoia Capital along with other VCs are experiencing considerably higher returns than is typical, particularly in the cryptocurrency sector, where venture funding has declined significantly since its peak in 2022 due to the cooling of the crypto market and the general startup slump.
Ribbit’s stake in Bridge is approximately 10%, valued at roughly $100 million. Bedrock and Index Ventures own approximately 6%, and Kathryn Haun’s venture firm holds 4%.
Bridge occasionally called the crypto industry’s response to Stripe, operates a stablecoin payments network that grants businesses access to the tokens.
It was established in 2022 by Zach Abrams and Sean Yu, former administrators of Coinbase, to compete with credit card companies and the global payments network SWIFT.
On October 20, Stripe, which offers conventional payment processing services, completed its $1.1 billion acquisition of Bridge. It occurred six months after Stripe co-founder John Collison pledged that the company would support stablecoins by “this summer.”
It is one of the most significant acquisitions in the crypto industry, and Stripe’s interest in Bridge was reportedly piqued by its rapid growth. The stablecoin platform has recently achieved a $14 million run rate, and it is continuing to increase.
Stripe’s acquisition of the crypto company is still pending regulatory approval and is expected to be officially finalized within the next few months.
