4 ms·
SVB collapse leaves founders liable for unpaid wages
- gsibble 4y agoArchive: https://12ft.io/proxy?&q=https%3A%2F%2Fwww.ft.com%2Fcontent%2F7adc2b7c-da22-4f13-80ad-f7ebd297b166 https://12ft.io/proxy?&q=https%3A%2F%2Fwww.ft.com%2Fcontent%...
- mrandish 4y agoThis isn't unique to SVB or this situation because it's how things have worked for years. In most jurisdictions, companies are always liable for unpaid wages and it's usually a non-dischargable liability so in the event of corporate insolvency, the board/shareholders (in a startup, often the founders) can be liable. Any competent founder is already well aware of this. BTW, is anyone else starting to get annoyed with the excessive media hyping of the SVB story? I've been doing tech startups in the valley for decades and this just isn't that big of a deal. I predict that >98% of SVB-banked startups will be able to withdraw sufficient funds to cover immediate payroll needs or alternatively arrange other short-term payroll bridge financing by the end of the week. I give >50% odds that SVB is recapitalized and releasing partial funds by EOD tomorrow.