Sequoia’s Alfred Lin on FTX, Crypto, and Investing for the Long Haul

Sequoia Capital partner Alfred Lin addresses the firm's $200 million investment in the collapsed crypto exchange FTX, framing the loss as a manageable percentage of assets under management despite the significant reputational damage. Lin emphasizes that venture capital inherently involves high failure rates and notes that the firm was misled by FTX’s leadership regarding the independence of its corporate entities. Beyond the FTX fallout, the discussion shifts to Sequoia’s long-term investment philosophy, which prioritizes "temporal arbitrage" and holding companies through market volatility rather than reacting to short-term price fluctuations. Lin also outlines the firm’s approach to the current economic downturn, advising founders to focus on unit economics and cash runway. Finally, he touches on the disruptive potential of generative AI, comparing its current trajectory to the early internet era and stressing the necessity for all companies to develop an AI strategy.