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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 matte
by 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 agoI 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 agoThese seem to me very different cases but of course you have a right to your own take