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Examples: (1) One reason SVB did well is it understood startups. If your startup just raised a large round and needed a small loan, you were more than good for
by wayne 4y ago
Examples:
(1) One reason SVB did well is it understood startups. If your startup just raised a large round and needed a small loan, you were more than good for the money, but most banks would scoff because your business didn't have a long record of profits.
(2) The "simple" thing of having a no-fee, no-minimum checking account with a convenient ATM you can use without fees is something we can take for granted in larger metro ares; in many places your local regional bank may be your only choice.
- mym1990 4y agoWhy would a startup need a small loan after raising a large round?
- hedora 4y ago- Corporate expense cards - Amortizing real estate costs into the future to get to a stable cash flow. - Rainy day funds (The last one is a risk to the lender, but can be low risk and profitable on average for the lender, as that part of SVB was.)
- eddsh1994 4y agoBefore the money is actually in the bank but is reliable because SVB partners with the VC firm responsible for leading the round who vouches?