3 ms·
Mortgages, Wine and Renovations: Silicon Valley Bank’s Deep Tech Ties
- eternalban 4y agoI'm still not sure what to make of the SVP affair (and all the various parties involved) but the knives are out. I wonder if the gentlemen who started the bank run actually thought about the damage to the ecosystem that made their fortunes, and it's possible effects on the tech sector in US. YC gets a star turn in this article, btw: "SVB’s dominance was well known at Y Combinator, a start-up incubator. Dozens of tech founders who participated in Y Combinator last year were told to open bank accounts at SVB, and they were introduced to SVB bankers at Y Combinator events, said three people who took part in Y Combinator’s 2022 class of tech entrepreneurs over the summer. "One described a cocktail hour mixer in which he was introduced to an SVB banker who could provide a loan to his start-up once he graduated from Y Combinator’s program. Six months later, when he needed a loan to buy his first home, he went to SVB. The bank looked at his company’s valuation, based on the money it had raised in its first round of funding, and spoke to investors of his company. It granted a loan after two other banks turned him down, he said."