VCs received cheap loans and financial services from SVB if they got their portfolio companies to bank with SVB. There were in some sense backdoor deals, which resulted in these odd loans and bad portfolios. It was all built on an assumption of cheap capital. People are not discussing how incestuous SVB was with VCs, and many will get off the hook for unethical financial behavior.
I dont think calling SVB poorly run is accurate, it was run for profits. The decision making is opaque at this point, and my guess is if the curtain is pulled back, it was run exactly as intended.
If you watch the most recent episode of the AllIn podcast, they hint at this being the case. Clearly they know there was bad behavior, but dont discuss it at length. This is just another case of wealthy people gambling, with the common man absorbing the losses.
VCs received cheap loans and financial services from SVB if they got their portfolio companies to bank with SVB. There were in some sense backdoor deals, which resulted in these odd loans and bad portfolios. It was all built on an assumption of cheap capital. People are not discussing how incestuous SVB was with VCs, and many will get off the hook for unethical financial behavior.
I dont think calling SVB poorly run is accurate, it was run for profits. The decision making is opaque at this point, and my guess is if the curtain is pulled back, it was run exactly as intended.
If you watch the most recent episode of the AllIn podcast, they hint at this being the case. Clearly they know there was bad behavior, but dont discuss it at length. This is just another case of wealthy people gambling, with the common man absorbing the losses.