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If you get any kind of loan from SVB, you're required to keep your cash with SVB. I think it was entirely reasonable for Series B and earlier startups to keep
by mrkurt 4y ago
If you get any kind of loan from SVB, you're required to keep your cash with SVB.
I think it was entirely reasonable for Series B and earlier startups to keep all their money in SVB. It was wrong, in hindsight, but reasonable. Bank failure is not the thing that's going to kill most startups. SVB just failed spectacularly, and it sure seems like it's not going to put anyone out of business.
- Scubabear68 4y ago“If you get any kind of loan from SVB, you’re required to keep your cash with SVB”. Really? How would this be enforceable or even discoverable?
- s1artibartfast 4y agoDiscovery might be difficult but enforcement is pretty simple. If you have a loan and break the terms of service, they can call your loan due. It's kind of like the terms of service on a home mortgage loan.