FTX missed out on $500 million by selling its Cursor investment for the original $200,000.
Thrive Capital and other top firms led a $900M round, showing confidence in Cursor’s growth.
FTX’s failure to capitalize on Cursor’s growth led to financial losses during bankruptcy.
FTX Exchange gave up $500 million in potential earnings from its early investment in Cursor, an AI-powered code editor. FTX’s financial stakeholders now face the complete loss of their investment in the Cursor entity. The funding round, combined with growing valuation, transformed into a disastrous decision for FTX, which resulted in the loss of investment stake.
In 2022, Alameda Research, a subsidiary of FTX, invested $200,000 in the startup Cursor. Since then, the value of that investment has grown significantly, with estimates placing it at around $500 million due to rising market valuations. However, during the FTX bankruptcy proceedings, liquidators sold the stake in Cursor for its original purchase price of $200,000.
According to FT, AI code editor Cursor has completed $900 million in financing, with a valuation of $9 billion. Alameda invested $200k in its seed round in 20…
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