4 ms·
The lines of credit that startups had at SVB are the most likely contagion.
by smileysteve 4y ago
The lines of credit that startups had at SVB are the most likely contagion.
- roflyear 4y agoYes. Depends on terms. But I know of a few that can have their entire credit line called for SVB as part of the bank's closure if needed. Kind of wild.
- smileysteve 4y agoMore importantly, having those lines of credit available between accounts receivable/payable terms or as a gap between rounds is key. For a non San Francisco based startup, my previous cos, line of credit could provide 1 year of opex at the time of a funding round