> Spread your yearly cash burn over 5-10 different banks, buy 1 year bonds and roll them over with the rest. That’s almost what SVB did, but they got hit by an

> Spread your yearly cash burn over 5-10 different banks, buy 1 year bonds and roll them over with the rest. That’s almost what SVB did, but they got hit by an “unexpected cash burn”. 1 year government bonds may be at low risk of default but there’s a high risk of interest rates and market conditions changing in that time. If you suddenly need the money in 6 months and interest rates have changed, you’ve lost money. You’d need to buy monthly bills to be truly safe and then have the cost of rolling them over every month. Ironically SVB offers a product that can help you do that: https://www.svb.com/liquidity-management/deposits-and-investments/svb-cash-sweep https://www.svb.com/liquidity-management/deposits-and-invest...