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Founders fund pulls money before SVB collapses
- boringg 4y agohttps://archive.ph/0ZIu7 https://archive.ph/0ZIu7
- boringg 4y agoIt looks like they were in the middle of a capital call - completely caught unaware.
- sidibe 4y agoTriggering a bank run where your startups get all their money out before their competitors is a nice way to get an edge
- cma 4y agoInciting a bank run is illegal (edit: only if done with false statements so may not apply), I wonder if coordinating one through multiple investments that are supposed to act as independent entities is too?
- TechBro8615 4y ago> Inciting a bank run is illegal Under what law?
- deleted 4y ago[deleted]
- freediverx 4y agoI love the part about the tech industry having a "moral imperative".
- adhesive_wombat 4y agoI genuinely cannot tell any more if "tech" is as fart-sniffingly high on their own supply as they look, or if it's an act to sucker in more money. Or if there's even a difference.
- escapecharacter 4y agoIt's fake it [1] till you make it. [1] that the farts smell good.
- synu 4y agoMust be nice to have access to the kind of info where you can act before others.
- sidibe 4y agoIn this case the fact that you're going to act might be the "info"
- yasp 4y agoSVB announcing their equity raise was public info.
- fjni 4y ago“But the firm learned that its limited partners were encountering issues using SVB services as they tried to transfer the funds” This though was not in Thursday.
- ProllyInfamous 4y agoIt's only `insider trading` if you're NOT in congress =P
- deleted 4y ago[deleted]
- starkd 4y agoFrom the article: >> But the firm learned that its limited partners were encountering issues using SVB services as they tried to transfer the funds — they weren’t immediately going through as expected, the person said. Quickly, Founders Fund asked its investors to transfer the money to other banks instead. The fund acted to ensure that startup funding deals that were slated to close in the coming days were not delayed, the person said. Having issues with SVB services seems like a legitimate source of info.
- Incipient 4y agoWhat do you expect on their official statement? "ahh we got a call from the CEO saying they were probably going to collapse in a few months, so we got our money out". I get it's unprovable/conspiracy stuff, but to think that doesn't happen at the top end is simply naive.
- qaq 4y agoBank run was triggered by extremely poor investment decisions of SVB and not by people acting on that public information.
- yasp 4y agoGiven the economic factors + SVB's deposit base, what should they have done differently?
- qaq 4y agobought bonds with 1y maturity and not 10y
- voisin 4y agoOr simply laddered their maturities to blend a lower average duration.
- skeeter2020 4y agoPretty crazy that the GIC savings strategy we teach kids in junior high might have mitigated this.
- aaomidi 4y agoI mean if I knew interest rates were gonna go high all the way back in 2021, then why didn’t SVB? Oh right cause they didn’t have a CRO. They bought one of the worst assets you could’ve in that time frame. MBSes with barely any interest and long maturity times.
- rvz 4y agoBefore triggering a bank run, make sure to save yourself first and by the time you've done that, announce to your portfolio companies to move their funds when you already know they are too late to save themselves. It's almost as if this was an exit scam and someone knew that the bank with the VC pyramid scheme was going to collapse, very quickly.
- alecco 4y agoThe title makes you think Thiel provoked a bank run. But the content shows they found issues with SVB when doing transfers while on regular business operations. No insider info. No conspiracy. But Bloomberg got the catchy headline and people love to hate on Thiel.
- deleted 4y ago[deleted]
- qaq 4y ago"Fun factoid" The CEO of SVB used to be CFO of Lehman I guess that explains a lot ...