“Sequoia Anticipates $100M Return from Stripe’s Bridge Acquisition”

Sequoia Capital Anticipates $100 Million Return from Bridge Acquisition by Stripe

Sequoia Capital, a renowned venture capital firm, anticipates a substantial return of $100 million from the acquisition of Bridge, a stablecoin platform, by payment processing giant Stripe. It has been reported that Sequoia Capital owns an interest of approximately 16% in Bridge.

This anticipated profit comes in the wake of Sequoia’s investment of $19 million in Bridge during its series A funding round that took place less than a year ago, as per a Bloomberg report from October 29.

Multiple Companies Set to Profit from Acquisition

Sequoia is not the lone firm projected to gain significantly from their stakes in Bridge. Other venture capital enterprises like Ribbit Capital, Haun Ventures, Index Ventures, and Bedrock Fund Management may collectively earn profits in the hundreds of millions.

It is worth highlighting that these returns have materialized quicker than the standard expectancy in the field of crypto venture capital. This landscape has recently experienced a downturn in venture capital investments since its zenith earlier in 2022 as a result of moderating market conditions. Ribbit possesses an approximately 10% stake in Bridge, which has an estimated value of $100 million. Bedrock and Index Ventures each have an interest of about 6%, while Kathryn Haun’s venture firm holds 4%.

Bridge, occasionally referred to as the cryptographic equivalent to Stripe, operates a stablecoin payments network granting businesses access to tokens. It was established in 2022 by former Coinbase executives Zach Abrams and Sean Yu. Notably, Bridge is a direct competitor to credit card providers and the global payment network, SWIFT.

Stripe, known for its payment processing services, concluded its proposition to acquire Bridge for $1.1 billion on October 20, only half a year after co-founder John Collison publicized the company’s newfound interest in stablecoins.

As one of the major deals in the crypto industry, Bridge’s rapid growth is said to have attracted Stripe’s interest. Recently, the stablecoin platform made headlines by achieving a $14 million run rate with an upward trend.

Despite these anticipations, Stripe’s acquisition of the crypto-centric company awaits regulatory approval and is anticipated to be settled within the subsequent few months. The acquisition of Stripe and the venture capital engagement in the crypto field are central to this discussion, emphasizing the transformative impact of mergers and acquisitions on the industry.