🌎 Sequoia Gains $100M from Stripe’s $1.1B Acquisition of Bridge

American venture capital firm Sequoia is set to make more than $100 million from Stripe’s acquisition of stablecoin platform Bridge. The deal reportedly cost Stripe $1.1 billion.

According to an Oct. 29 Bloomberg report, Sequoia and other venture capital firms saw their investments in the crypto startup return multiple times over. Sources familiar with the deal revealed that venture capitalists are set to gain hundreds of millions of dollars from Stripe’s acquisition of the stablecoin startup platform Bridge.

Sequoia Capital owns nearly 16% of Bridge, according to multiple sources who requested anonymity. Consequently, Sequoia’s share in the startup is valued at more than $100 million. This return significantly eclipses Sequoia’s initial investment of $19 million, made during Bridge’s Series A funding less than a year ago.

Stripe’s Strategic Acquisition

San Francisco-based payment processing company Stripe agreed to buy Bridge for $1.1 billion on Oct. 20. The substantial value of the acquisition has injected new optimism among venture capitalists interested in crypto-related projects.

Other Venture Capitals Benefiting

Sequoia is not the only venture capital firm to benefit from the Stripe acquisition. Ribbit, another venture capital firm, owns nearly 10% of Bridge, which is worth almost $100 million. Other investors include Bedrock, with more than 6%, Index at 6%, and Haun Ventures owning 4%.

About Bridge

Bridge is a three-year-old startup that operates as a stablecoin platform. Stablecoins are digital currencies pegged to stable assets, such as the U.S. dollar or other fiat currencies. Their value remains stable, making them suitable for everyday transactions.

Despite being a relatively new platform, Bridge has achieved a run rate worth around $14 million and continues to grow rapidly. This rapid growth is what ultimately attracted Stripe to acquire the startup for $1.1 billion.

Stripe’s Continued Interest in Stablecoins

Beyond the Bridge acquisition, Stripe has shown ongoing interest in other stablecoin projects. On Oct. 15, Stripe partnered with Paxos to include Circle’s USDC stablecoin under its “Pay with Crypto” option. This partnership allows merchants across 70 nations to make payments using the stablecoin.

Previously, Stripe introduced payouts for creators on X via USDC and launched a fiat-to-crypto onramp service in 2022. These initiatives highlight Stripe’s commitment to integrating cryptocurrency solutions into its payment processing ecosystem.