4 ms·

Just want to say that as a startup founder, running tech companies for the past many decades, this post makes me sad, not grateful or joyous. It makes me feel l

Just want to say that as a startup founder, running tech companies for the past many decades, this post makes me sad, not grateful or joyous. It makes me feel like there's plenty of money on the sidelines to fund $300M+ at-a-whim larks to bail out Startup founders who are mostly going to go bust anyways (those are just the facts of startup life), but meanwhile startup founders outside of that bubble can't raise a penny and go bust / layoff anyways. Layoffs.fyi tracker hasn't been slowing down. So it's just a feeling, but it's not of happiness - it's of profound sadness and disappointment.

chernevik 4y ago
Then you aren't getting the concept. This isn't equity funding for a business idea. It's basically buying a claim on a bank in receivership. It doesn't matter if that claim is held by nextbigthing.com or Apple. Those claims are backed by SVB's portfolio of T-bonds and MBS so they are very solid. The benefit to users is acceleration of receipt and certainty. It's hardly a lark. The OP was planning to target this offering to startups, which are only fraction of SVB's depositor base. Someone saw their community in distress and thought to use their connections to put together a solution, for a modest profit. Sounds fine to me.
- rexreed 4y ago
  I understand the concept of this particular fund raise / action. I totally get it. You don't understand my sadness. The money is there from wealthy individual investors to rescue SVB depositors who might miss a payroll or otherwise risk solvency, but it's not there to rescue other startups who are already going bust. Amazing that $300M just can appear like that over a weekend to save startups in one case, and yet doesn't exist in the other case. And it makes me sad. It's a feeling, and you might feel joy or even excitement. But I feel sadness, and that's just how I feel.
  - chernevik 4y ago
    These seem to me very different cases but of course you have a right to your own take

chernevik 4y ago

Then you aren't getting the concept. This isn't equity funding for a business idea. It's basically buying a claim on a bank in receivership. It doesn't matter if that claim is held by nextbigthing.com or Apple. Those claims are backed by SVB's portfolio of T-bonds and MBS so they are very solid. The benefit to users is acceleration of receipt and certainty. It's hardly a lark. The OP was planning to target this offering to startups, which are only fraction of SVB's depositor base. Someone saw their community in distress and thought to use their connections to put together a solution, for a modest profit. Sounds fine to me.

rexreed 4y ago
I understand the concept of this particular fund raise / action. I totally get it. You don't understand my sadness. The money is there from wealthy individual investors to rescue SVB depositors who might miss a payroll or otherwise risk solvency, but it's not there to rescue other startups who are already going bust. Amazing that $300M just can appear like that over a weekend to save startups in one case, and yet doesn't exist in the other case. And it makes me sad. It's a feeling, and you might feel joy or even excitement. But I feel sadness, and that's just how I feel.
- chernevik 4y ago
  These seem to me very different cases but of course you have a right to your own take