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Brex isn't making the gamble, they're just managing it- > This credit line is funded by 3rd-party capital (and not Brex directly), who are working with Brex to
by tedivm 4y ago
Brex isn't making the gamble, they're just managing it-
> This credit line is funded by 3rd-party capital (and not Brex directly), who are working with Brex to minimize the impact of this event to the startup ecosystem.
It sounds like a bunch of VCs are gambling on the return, while also knowing it helps stabilize the system that built (and likely holds, in some way or another) their wealth.
- svnt 4y agoThe run, predominantly by VCs, is what destabilized the bank. In a regime of rising interest rates this gives them pricing power on the loans where they were just passive depositors previously. Since SVB loans were essentially only to companies who were already customers of these VCs, you could view this move fairly cynically.