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It isn’t too difficult for you as individual to open an account anywhere . Startups don’t have that luxury it was and still pretty difficult to do banking as a
by manquer 4y ago
It isn’t too difficult for you as individual to open an account anywhere .
Startups don’t have that luxury it was and still pretty difficult to do banking as an early stage startup . There is a reason why there are only 2-3 banks specialized in this sector and everyone banked with them.
If you were a small startup keeping your money in SVB was the safest thing you could have done till last week. They were the largest by far and all your VCs recommended them and probably introduced you to them so you could open an account .
- roland35 4y agoI have a hard time believing a business can't simply open a second checking account somewhere, assuming they have the cash and don't need any extra features. Maybe if it was a very early company. VCs and advisors failed their companies if this was their only advice. Also "safest thing since last week" isn't super convincing! Maybe I'm just more conservative since I used to bank with Wachovia which failed in 2008. As an engineer I am expected to have a disaster recovery plan. Sure it's unlikely that AWS goes out of business, but what if we lose access? Lose data? Ransomware? Businesses need to have some basic planning around this kind of stuff or else they run this type of risk unfortunately. Again I hope they get all their deposits back. But they should hopefully be able to stay in business for a short time until the dust settles.
- deleted 4y ago[deleted]