[rmilk]

But isn’t your CFO planning for financial risk? Do you have hazard insurance on your leased offices, what happens if one of your key employees is unavailable, a large customer is late on payment, you get hit by supply chain issues, etc.

You can’t seriously tell me that the CFO who is responsible for corporate finance at these SVB customers didn’t realize a business checking or savings account is not fully guaranteed? It’s in every single bank brochure and statement. If that’s that case, they need to suffer the consequences of poor contingency planning.

[andrewjl]

Most startups don't have a CFO until they reach a certain size.

Additionally many startups had covenants in their financing agreements with investors that required keeping funds in SVB so they didn't have a choice.

[watwut]

Isnt then the whole thing fault of VCs who included those covenant? The same VCs that now cry hardest?

Moreover, both startups and VCs are literally the groups that celebrate risk taking and disruption. This is it, this is the flip side of risk, the definition of risk is that you might loose. But somehow, when they loose, due to risk taking, then suddenly they want extra bail outs and help.

[kevinventullo]

Sounds like the investors made a poor choice including that in the financing agreement.