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> Hundreds of startups will become illiquid as a result of SVB's collapse, I know SVB was like a "high tech bank" that partnered with things like Stripe Atlas,

> Hundreds of startups will become illiquid as a result of SVB's collapse, I know SVB was like a "high tech bank" that partnered with things like Stripe Atlas, but is there any reason that startups were using it for their regular operating funds? Other than the name, was there something that actually made this bank particularly suitable for them?

borski 4y ago
They 'understand' startups. That is, they were willing to work with founders of new ventures, didn't require insane proof of provenance of funds (because suddenly millions of dollars would appear overnight), and would support founders with mortgages, for example, that were running companies that weren't yet necessarily profitable but were well-funded nevertheless.
LightFog 4y ago
They were proactive in incubators and allowed new companies to open accounts and make large deposits right away, when many mainstream banks wouldn’t or were too slow. I’m guessing plenty of startups stuck with them through inertia at least.
cragfar 4y ago
I can't say specifically for tech startups, but a lot of times lenders will require you to use their banking services as a funding requirement.
0x457 4y ago
Try to walk to BofA as an entity that didn't exist yesterday and see how that goes.
- yieldcrv 4y ago
  Its not that bad. But it works better at a criminal bank. Particularly one that might open a bunch of extra accounts for you when you aren't looking. Obviously that means opening the first account won't be the problem either. Get a big criminal bank and they won't freeze your account for dumb reasons. Or smart reasons. So just follow the settlements with the federal government, its advertising.
- dboreham 4y ago
  Not BofA, but I've done this several times at Wells Fargo and never had a problem.
  - 0x457 4y ago
    Did you also deposit 100M the same day? Try opening line of credit the same day: startup banks will open it without any issues as long as you have cash. I had to explain to chase large wire transfers after banking with them for years. I had small amounts of money held in AML lock for months with BofA and Chase.
chasd00 4y ago
High interest rate and naive customers who think they’re the smartest guys in the room.

borski 4y ago

They 'understand' startups. That is, they were willing to work with founders of new ventures, didn't require insane proof of provenance of funds (because suddenly millions of dollars would appear overnight), and would support founders with mortgages, for example, that were running companies that weren't yet necessarily profitable but were well-funded nevertheless.

LightFog 4y ago

They were proactive in incubators and allowed new companies to open accounts and make large deposits right away, when many mainstream banks wouldn’t or were too slow. I’m guessing plenty of startups stuck with them through inertia at least.

cragfar 4y ago

I can't say specifically for tech startups, but a lot of times lenders will require you to use their banking services as a funding requirement.

0x457 4y ago

Try to walk to BofA as an entity that didn't exist yesterday and see how that goes.

yieldcrv 4y ago
Its not that bad. But it works better at a criminal bank. Particularly one that might open a bunch of extra accounts for you when you aren't looking. Obviously that means opening the first account won't be the problem either. Get a big criminal bank and they won't freeze your account for dumb reasons. Or smart reasons. So just follow the settlements with the federal government, its advertising.
dboreham 4y ago
Not BofA, but I've done this several times at Wells Fargo and never had a problem.
- 0x457 4y ago
  Did you also deposit 100M the same day? Try opening line of credit the same day: startup banks will open it without any issues as long as you have cash. I had to explain to chase large wire transfers after banking with them for years. I had small amounts of money held in AML lock for months with BofA and Chase.

chasd00 4y ago

High interest rate and naive customers who think they’re the smartest guys in the room.