Which institutions were affected by FTX and how much money did they lose?

In June 2021, FTX raised $1 billion from venture investors including Paradigm, SoftBank, and Sequoia Capital at a valuation of $18 billion.

Three months later, in September, FTX received $421 million in investment from investors including Singapore government-owned investment firm Temasek, Tiger Global Management and the Ontario Teachers’ Pension Plan, pushing its valuation to $25 billion.

In January 2022, investors (many of whom had also invested in previous rounds) poured another $400 million into FTX, valuing it at $32 billion.

Today, the $32 billion market cap has vanished. So has the more than $1.8 billion in capital that investors poured into FTX over three years. At least two major shareholders have written down their investments in FTX to $0: Sequoia Capital and Paradigm.

Technically, FTX investors’ losses were limited to the roughly $1.8 billion they put into the business. But their paper losses were much higher. If any of these investors had cashed out in January, when FTX’s valuation hit $32 billion, their fortunes would have been in the tens or even hundreds of millions of dollars. Instead, they likely lost everything.

Who has the most to lose? Forbes has a list of FTX shareholders sent to us by Sam Bankman-Fried in August during our coverage of the Forbes 400 list. Here are the venture capital firms, pension plans, and two celebrity endorsers who have a lot to lose if FTX can’t be saved.

(The analysis does not include shares of the exchange’s U.S. business, FTX US, which raised $400 million at an $8 billion valuation in January in tandem with FTX’s Series C round. It’s unclear how FTX’s troubles will affect the value of FTX US. Losses at FTX US could push up some investors’ total investments in Sam Bankman-Fried’s empire.)

According to an equity table Sam Bankman-Fried sent to Forbes in August, investors who would suffer huge losses if FTX goes to zero include employees, investment companies and Ontario teachers’ pension funds.

Sequoia Capital

FTX shares: 1.1%

Estimated investment amount (FTX only): $200 million

Peak value in January 2022: $350 million

The Silicon Valley venture capital fund, known for investing in tech giants like Apple, Google, and Airbnb, participated in FTX's B and B-1 rounds of more than $200 million, along with independent entity Sequoia Capital Global Equities. Sequoia Capital shared a letter on Twitter. "FTX is the high-quality global cryptocurrency exchange the world needs," Sequoia Capital partner Alfred Lin said in June 2021 after the Series B round. "Sam is the perfect founder to build this business, and the team's execution is extraordinary."

Their support is mutual: FTX Ventures, a venture capital fund backed by Alameda Research and Bankman-Fried, has invested “hundreds of millions of dollars” in funds run by Sequoia and two other firms, according to a report published Thursday by The Information.

Earlier this year, Sequoia’s investment in FTX peaked at $350 million, marking the biggest possible loss for outside investors in the exchange. Sequoia said in a letter to investors that its FTX stake was less than 3% of the fund’s committed capital, and that the fund’s $150 million loss was offset by about $7.5 billion in realized and unrealized gains.

Temasek

FTX shares: 1%

Investment amount: US$205 million

Peak value in January 2022: $320 million

Temasek, an investment company owned by the Singapore government, is the second-largest external investor on its balance sheet with 7 million shares. The $297 billion business, which owns large stakes in Singapore’s DBS Group and Singapore Airlines, has invested in all three of FTX’s major funding rounds. A Temasek spokesman told Reuters on Wednesday that they were “aware of the developments” and “working with FTX in our capacity as a shareholder” as its $320 million stake was on the verge of becoming worthless.

Paradigm

FTX shares: 1%

Investment amount: US$215 million

Peak value in January 2022: $315 million

Paradigm, an investment firm “focused on supporting future crypto/Web3 companies and protocols,” invested in FTX’s Series B and C rounds and owned nearly 7 million shares of FTX as of August. “Sam and FTX have a bright future,” Paradigm co-founder Matt Huang said in July 2021, “and Paradigm is excited to be a part of it.”

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

Ontario Teachers' Pension Plan

FTX shares: 0.4%

Investment amount: US$80 million

Peak value in January 2022: $125 million

The Ontario Teachers’ Pension Plan, which manages the retirement funds for the Canadian province’s 333,000 teachers, invested a total of $95 million in FTX and FTX US between late 2021 and early 2022. The FTX portion of that investment alone was worth about $130 after FTX’s Series C round — before the crypto winter and the current crisis. “While there is uncertainty about the future of FTX,” Ontario Teachers wrote in a statement, “any financial loss on this investment will have limited impact on the plan as the investment represents less than 0.05% of our total net assets.”

These are the major shareholders identified in a shareholding table obtained by Forbes, and there are other big investors not mentioned who could lose a lot.

Other investors who joined FTX's $1 billion Series B financing in June 2021 hold a 3.5% stake in FTX. These investors include entities related to billionaires Paul Tudor Jones, Daniel Loeb and Israel Englander, as well as companies such as Tiger Global Management and SoftBank - both of which also participated in FTX's Series C financing in January and are likely to become major shareholders.

According to the equity table, investors in that round (excluding Temasek and Paradigm) hold nearly 1% of FTX and have a paper loss of more than $270 million. A huge amount, but small for these funds, which usually have so much capital that they can invest large sums in dozens of risky unicorn companies as long as at least one or two succeed.

At least two people who signed endorsement deals with FTX also faced failure.

According to an earlier equity table Bankman-Fried shared with Forbes, as of June 2021, NFL legend Tom Brady and fashion model Gisele Bundchen owned 0.15% and 0.09% of FTX, respectively . Taking into account assumed dilution in subsequent rounds of financing, Forbes estimates their ownership in FTX to be 0.14% and 0.8%, respectively. It is unclear how much the former couple invested in their shares, but before the cryptocurrency price drop and Bankman-Fried's failure, Brady's estimated equity was worth $45 million and Gisele's was worth $25 million.

Among them, the most affected are FTX employees. According to the equity mark, as of August, the company's option pool held 20,858,124 shares, accounting for about 3% of FTX. In January 2022, FTX employees own stocks worth up to $950 million. Now it may be worthless. Will they get the money back? Bankman-Fried made his priorities clear: first, according to a series of tweets he posted on Thursday, then he will focus on "new and old" investors————then Bankman-Fried said he would take care of the workers. Well, those who "fought for their careers," he clarified, "and are not responsible for any of these things."

53 institutions that have transactions with FTX

Institutional Investors

Banking and Insurance

Auditing Agency

Professional Services

Compliance

IT

FTX Affiliates