4 ms·

> Funny how everyone loves this idea but it only ever hurts small companies. Why does size matter? These VC funded "small companies" are so sketchy that they n

• dmix 4y ago
  So because traditional banks do not understand these non-traditional businesses they are "sketchy". That's a bit of a stretch. I've worked for two different companies with serious income in the 10s of millions who are still paying their salaries/taxes a decade later that were treated with disdain by traditional banks. One of which used SVB for that exact reason. Neither raised VC. Nothing about SVB's failure had to do with tech startups. It's entirely because their executives gambled on a giant ball of mortgage debt with the worst timing. And now tech companies are paying the consequence. Much like how everyone else did in 2008. It's trendy to blame VCs and the tech 'bubble' but this isn't the time. And I should reiterate I don't agree gov should be excusing the bankers behavior to save tech startups.