> I simply don't believe you ever founded a startup.
CTO Recourse Technologies; acquired by Symantec in 2002.
CEO, later VP of Engineering TransLattice; acquired by QualComm 2017.
And a couple of other things inbetween. Now I'm a middle school/high school teacher.
Your assumption of bad faith is terrible.
> A big variable here is simply when and how money market sweep funds will be handled and made available, if you had millions without sweeping into a money market fund, that's silly.
You just use IntraFi and they take care of the details for you. Odds are your bank makes the introduction when you ask the question about the exposure.
> This is one of the dumbest views
Make an argument without calling people dumb.
> If the government can protect against huge losses because of their liquidity, why in the world wouldn't we let them? The bonds SVB held are only mark-to-market losses right now because they haven't matured.
In a discussion elsewhere, the moment I mentioned my opposition to a bailout, the immediate response was, "Sounds like you haven’t run a startup ¯\_(ツ)_/¯". I've started 4 companies, one of them a classic venture-backed thing.
The immediate assumption of "Oh, you people who are not as me and just can't possibly understand tech, so you don't get to have an opinion," is exactly the sort of arrogant exceptionalism that got a lot of people into this jam. Like, I get that it's awful to realize one's business is possibly doomed. I have been there. But in that moment to flail around and blame others rather than understanding the mistake? That's a great way to keep making the same sort of arrogant mistakes.
> is exactly the sort of arrogant exceptionalism that got a lot of people into this jam
Well, I don't think you start a business if you're being entirely rational, either. You basically need an outsized belief in your own capabilities and need to have the erroneous belief that you entirely control your own destiny.
Black swan events that might entirely wipe you out and that are completely out of your control cause cognitive dissonance.
I do think FDIC should choose to incur some amount of risk of being surprised by additional liabilities by making a quick dividend payment. The benefits of keeping things moving and adding some clarity soon outweigh a small risk of partially bailing out losses.
> You're expecting early stage venture backed companies to have treasury expertise? Time to focus and think about that?
You hire a financial manager, in-house or a service. Basic delegation task that any one (individual or business) dealing with more than a million dollars should probably be doing anyways. Certainly anyone dealing with the kind of money we're talking about here with SVB's customers.
