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They literally brag about giving loans backed by non-liquid "lottery ticket" startup ISOs, which statistically are worth $0 95% of the time. And thats not even
by shmatt 4y ago
They literally brag about giving loans backed by non-liquid "lottery ticket" startup ISOs, which statistically are worth $0 95% of the time. And thats not even what caused the bank run. But now that the bank run happened, this is why no other bank wants to buy them
https://svb.com/startup-insights/venture-debt/how-does-venture-debt-work https://svb.com/startup-insights/venture-debt/how-does-ventu...
- MrMan 4y agoyes its the inverted power law thing - the same dynamics that make 1/n approach work in a VC equity portfolio seems like poison in a debt portfolio - only one company out of n survives? fine if that company pops on the equity side, that pays for all the other losers. but on the debt side, it seems like a bad idea lol.