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Indeed I have read countless times on hn that it would be very risky to keep more than the insured amount in a bank. Sounds like YC should invest more in mento
by jimnotgym 4y ago
Indeed I have read countless times on hn that it would be very risky to keep more than the insured amount in a bank.
Sounds like YC should invest more in mentoring their portfolio companies to manage their treasury correctly.
- ZachPruckowski 4y agoWell and it's not just that they had money over the insured amount in a bank. It's that they had ALL of their money in ONE bank. If they had $500K in three different banks instead of $1.5M in one bank, there would still be a risk, but it would be that they'd lose $250K if any of those three banks failed, not that they'd lose $1.25M if one particular bank failed. (And obviously actual losses are gonna be like 20% here, not 100%, but you get the picture).
- jimnotgym 4y agoSo why on earth was everyone using SVB?