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Roku having 75% of their money elsewhere instead of going 100% into a single bank seems to be a significant thing here. Given the much-discussed recently limit
by majormajor 4y ago
Roku having 75% of their money elsewhere instead of going 100% into a single bank seems to be a significant thing here.
Given the much-discussed recently limits of depending on the FDIC, not putting all your eggs in one bank basket seems incredibly wise, guess now we just see how broadly exposed other businesses and other banks are.
- jiveturkey 4y agoall companies with this size of cash have an internal treasury function
- majormajor 4y agoObviously Roku is a lot larger than your typical startup, but it's a curious blind spot risk that all the VC's who panic-messaged founders to take out their cash yesterday didn't bother to try to mitigate it in advance across their portfolios of companies. The more money you have, the less competence you need - hardly a surprise, but... there are no shortage of articles that make it to HN with VCs talking up their own book about how great they are, so I think calling them out is fair. EDIT: and it's also worth everyone reflecting on where their own money is, and how many things would have to fail before they can get it. If you are fortunate enough to have any significant-to-you amount of assets your rely on vs just living paycheck-to-paycheck or on credit cards... think about spreading that shit out.
- SkyPuncher 4y agoThis is simply not a risk that most people would even consider worth thinking about. Yes, banks fail. However, the large, reputable ones fail few and far between. If you're a seed/Series A startup, you'd be much better off focusing on creating value. Your far more likely to fail to find PMF than you are to have your bank go belly up.