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Did you have more than $250k sitting in SVB? We're you unaware of the $250k FDIC insured limit? Or were you, and didn't act on mitigating this potential problem
by nicenewtemp84 4y ago
Did you have more than $250k sitting in SVB? We're you unaware of the $250k FDIC insured limit? Or were you, and didn't act on mitigating this potential problem? Any particular reason?
- seizethecheese 4y agoYes, I was aware. I don’t think there’s a moral imperative to help us, necessarily. I would only ask that tech depositors not be treated differently due to the schadenfreude I see in this thread. Consider companies small enough to have no one whose job it is to do finance. As a founder you’re already working long hours and bank failure is not a risk that is top of mind compared to lack of product market fit.
- deleted 4y ago[deleted]
- wpietri 4y agoAs far as I can tell, everybody is asking that tech depositors get treated like any other uninsured depositor. That being fairly, under the long-established rules. As a founder, I am sorry that VCs apparently don't help with treasury management. That strikes me as something that should be a clear part of their value prop.
- AlchemistCamp 4y agoHow would you act to mitigate it? Most banks don’t really like working with startups and sometimes freeze their money over AML controls that don’t play nicely with investor checks. If there’s a way to purchase insurance against this risk, I’ve never heard of it, and it’s probably too expensive for early stage startups.