Sequoia Capital, a venture capital firm, will make roughly $100 million from Stripe’s $1.1 billion acquisition of Bridge. The significant return is particularly notable in the cryptocurrency sector, where venture capital has sharply declined from its peak in 2022.
According to Bloomberg, Sequoia invested $19 million in Bridge’s Series A investment round less than a year ago. The amount represents 16% of the stablecoin platform’s ownership, which might result in a $100 million windfall when liquidated.
Bridge is projected to yield substantial returns for those companies that invested in it. Nearly 10% of Bridge is owned by Ribbit Capital, which anticipates a return comparable to Sequoia’s. Haun Ventures still owns 4% of the business, while Index Ventures and Bedrock Fund Management, own roughly 6% a piece.
Stripe revealed its completed $1.1 billion offer for Bridge. Sean Yu and Zach Abrams co-founded the platform, which provides software solutions for companies to handle stablecoin payments. The deal is anticipated to be finalized in the upcoming months, although it is still awaiting regulatory approval.
The billion-dollar deal was disclosed six months after Stripe co-founder John Collison promised the company would support stablecoins by mid-2024.
The purchase of Bridge is one of the largest acquisitions ever in the crypto industry. Stripe reportedly became interested in Bridge because of exponential growth, which saw it reach a $14 million run rate. Analysts commonly use this indicator to predict a company’s future performance based on its current financial data.
