swang720
Joined 15 years ago
Joined 15 years ago
Hedge funds are offering to buy startups’ deposits stranded at Silicon Valley Bank for as little as 60 cents on the dollar, pitching expensive but crucial lifelines to founders unable to access their cash after the lender collapsed yesterday, people familiar with the matter said.
Firms better known for investing in distressed debt, including Oaktree, one of the people said, are fanning out to startups in the wake of the bank’s failure and seizure by the Federal Insurance Deposit Corp. on Friday. Its collapse left hundreds of startups — as well as the venture funds that backed them — unable to access their cash to meet payroll and other expenses.
Bids range from 60 to 80 cents on the dollar, the people said, reflecting a range of expectations for how much of the uninsured deposits — those that exceed the FDIC’s $250,000-per-customer cap — will ultimately be recovered once the bank’s assets are sold or wound down.
Source: https://www.bloomberg.com/opinion/articles/2023-03-13/svb-co...
How is this different from any B2B SaaS product?
I disagree with much in this article, but I do agree with this specific point. I've had many conversations in San Francisco that have turned me off from discussing politics.
It's very difficult for some to accept that others can have more moderate viewpoints on certain issues. Just because one doesn't agree with another to the extent they do doesn't mean there isn't a middle ground.
With that said, in California, there's a lot of problems that can't be solved by simply throwing more money at it -- for instance, homelessness.
While Californians are aligned on many things, in some ways your perspective on the housing situation depends a lot on whether you own a home or don’t.
If things stay their course I plan on renting indefinitely and moving to another state where prices are relatively affordable for my family.
Having grown up in the Bay Area, it’s a little disconcerting that I can’t afford to settle down here after moving back after college.