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Invested in the bank? Got a sweet personal deal with the bank in return for pinning their investments to the bank? It certainly sounds like they had some side-
by luckylion 4y ago
Invested in the bank? Got a sweet personal deal with the bank in return for pinning their investments to the bank?
It certainly sounds like they had some side-things going on, otherwise hard to believe they'd not just recommend fiscally unsound practices to their portfolio companies, but even require them to.
- gnicholas 4y agoIf practices like these are widespread, it could explain why some VCs are pushing hard for a government backstop. It would be embarrassing to them if these clauses came to light, and they could arguably be on the hook for damages in lawsuits by shareholders of their portfolio companies.
- BadCookie 4y agoIt also seems possible that some VCs have their personal funds tied up in SVB.
- adastra22 4y agoA LOT of them do. And late-stage founders as well. You know how people like Elon cash out their shares via collateralized loans? What bank do you think processes those loans? And SVB really didn't like to be transactional--they work hard to make sure your SVB collateralized loan is linked to a SVB checking account and a SVB founder-shares-backed mortgage for your 5,000 sqft mansion in Los Altos Hills.