[Ekaros]

Not keep the eggs in one basket. Have accounts for running costs in multiple different institutions. Basic prudency. Would also help with other issues, like a bank's mainframe catching fire and being unable to transact for period.

[emrah]

Is that practical though? Is that standard practice?

[PaulHoule]

It’s not just that a firm could diversity but the network of firms around your firm…. E.g. if you weren’t think “I am in Silicon Valley I have to bank at SVB” and you didn’t think “I am a startup so I need to have my payroll processed by a startup… that also banks as SVB” your exposure is reduced.