[gen220]

This is how the banking system works.

As fiduciaries responsible for managing millions of dollars in capital, founders/VC have a responsibility to understand the parameters of the financial game they're playing.

Any competent financial risk manager has a well-worn playbook of solutions to the problem of "how do we put money in short/medium/long-term storage?", that are appropriate in accordance to how big the pile is and how liquid you need it to be.

If we disagree with the rules of the game, the proper solution is to lobby to have them changed and debate the merits in the court of public opinion, not to live in ignorance of the rules and cry "contagion" to be made whole, when we're faced with the consequences of ignoring those rules.