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It was a lot of little things, but the main thing was that the understood startups so they would take into account your funding as well as your LOIs when making
by jedberg 4y ago
It was a lot of little things, but the main thing was that the understood startups so they would take into account your funding as well as your LOIs when making loan decisions, whereas most banks would not because they didn't understand them. That made it easier to get free cash when all of your startup's assets were basically owed money.
- listenallyall 4y agoOr maybe the conservative old guard banks do understand, that startups without reliable cash flow, or on a growth-at-all-costs trajectory, are poor lending prospects. Seems whatever you claim that SVB "understood" led to its demise.
- jedberg 4y agoWhat appears to have led to the demise was when they branched out beyond startups into more traditional banking activities like mortgage backed securities.