Sequoia Capital and Other VC Giants Set for Big Payout in Stripe’s $1.1B Bridge Acquisition

Venture capital titan Sequoia Capital is poised to secure a big return on its investment in Bridge, a stablecoin payment platform, thanks to Stripe’s recent $1.1 billion acquisition deal. With a 16% stake in Bridge, Sequoia stands to earn over $100 million, marking an exceptional return on its original $19 million Series A investment in the company, made just within the last year.

Alongside Sequoia, several other major VC firms, including Ribbit Capital, Haun Ventures, Index Ventures, and Bedrock Fund Management, are in line for lucrative returns.

Bloomberg, citing sources familiar with the deal, reported on October 29 that Ribbit Capital’s 10% stake in Bridge could translate to a $100 million gain. Bedrock and Index Ventures each own around 6% of the platform, while Haun Ventures holds a 4% stake. Such significant returns arrive sooner than expected, especially within the crypto sector, where venture funding has notably slowed since 2022.

Bridge’s Role in the Crypto Payments Landscape

Founded by former Coinbase executives Zach Abrams and Sean Yu in 2022, Bridge offers a stablecoin payment network geared toward businesses looking for faster, more efficient payment methods outside traditional banking.

Designed to compete with credit card companies and SWIFT, Bridge has been heralded as the “crypto industry’s answer to Stripe,” providing stablecoin solutions that streamline payments across borders. Its rapid growth, marked by a recent $14 million run rate, reportedly caught the eye of Stripe.

In line with a statement made by Stripe co-founder John Collison, Stripe promised to support stablecoins by this summer. The acquisition of Bridge further solidifies that commitment, signaling a deeper entry into digital asset markets. Stripe’s bid, finalized on Oct. 20, represents one of the largest acquisitions in the crypto industry, reflecting a unique synergy between traditional payment solutions and emerging blockchain technology.

Acquisition Awaits Regulatory Green Light

Although Stripe has announced its intent to acquire Bridge, the deal still requires regulatory clearance before it becomes official, with completion anticipated in the coming months. For now, this acquisition underscores how quickly VC investments in digital payments infrastructure can yield returns, especially in cases like Bridge, where rapid scaling and robust functionality make it an attractive asset.

As Sequoia, Ribbit, and other firms prepare for windfalls, Stripe’s investment suggests a confident expansion into the digital currency space.