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SVTPerformance's Chain of Restaurants
Road Side Pub
SVB is Now In the Hands of the FDIC
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<blockquote data-quote="Klaus" data-source="post: 16890191" data-attributes="member: 190070"><p>FYI VCs/PE dont short stocks. They do not even have prime broker accounts LOL</p><p></p><p>Although twitter will have you believe otherwise, VCs were caught flat footed by this. The biggest **** ups that I observed were by some very prestigious VCs. They had all of their banking relationships at SVB - operating account, cash control accounts, all were >$250k. This is from direct experience.</p><p></p><p>There was an attempt to buy deposits at a discount but this did not happen since the FDIC back stopped all deposits.</p><p></p><p>Edit: I should note one thing that is kind of dumb about the (((tHe VcS CaUsEd tHiS!!!!))) narrative is that it betrays the ignorance of how venture works. SVB was an axe in venture debt. They provided all debt to the underlying companies that VCs provide equity to. This debt was artificially cheap which juiced the returns of the equity that was owned by the VCs. </p><p></p><p>The VCs LOVED SVB which is why they all had their operating and cash accounts at SVB. It was a quid pro quo. They were a golden goose which is going to **** up venture returns from here on out. </p><p></p><p>Here is a primer on venture debt. SVB was HUGE in this market <a href="https://corporatefinanceinstitute.com/resources/capital-markets/venture-debt/" target="_blank">Venture Debt</a></p></blockquote><p></p>
[QUOTE="Klaus, post: 16890191, member: 190070"] FYI VCs/PE dont short stocks. They do not even have prime broker accounts LOL Although twitter will have you believe otherwise, VCs were caught flat footed by this. The biggest **** ups that I observed were by some very prestigious VCs. They had all of their banking relationships at SVB - operating account, cash control accounts, all were >$250k. This is from direct experience. There was an attempt to buy deposits at a discount but this did not happen since the FDIC back stopped all deposits. Edit: I should note one thing that is kind of dumb about the (((tHe VcS CaUsEd tHiS!!!!))) narrative is that it betrays the ignorance of how venture works. SVB was an axe in venture debt. They provided all debt to the underlying companies that VCs provide equity to. This debt was artificially cheap which juiced the returns of the equity that was owned by the VCs. The VCs LOVED SVB which is why they all had their operating and cash accounts at SVB. It was a quid pro quo. They were a golden goose which is going to **** up venture returns from here on out. Here is a primer on venture debt. SVB was HUGE in this market [URL='https://corporatefinanceinstitute.com/resources/capital-markets/venture-debt/']Venture Debt[/URL] [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
SVB is Now In the Hands of the FDIC
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