I don't understand the context. Why is this a big deal? Why would 90% of the employees bail?
Probably because Better.com went through poorly-executed layoffs.
Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
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Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#12Given that the CEO is probably worth nowhere near $750MM absent his founders stock, isn't this just him just leaning into a binary outcome? Either Better.com can pay off the loan in 5 years or it's gone broke by the and he gives up his share in bankruptcy. I mean, it cuts out the "just squeaking by" option as him having to give up all his equity in something that was worth hundreds of millions is a big kick in the te…
A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.
The good ol' Elon Musk strategy
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#13I don't understand the context. Why is this a big deal? Why would 90% of the employees bail?
That’s the guy who fired a bunch of people over Zoom a few months ago. Financial issues mainly, here is some context: https://techcrunch.com/2022/02/18/better-com-loses-more-seni...
He did 3 separate mass zoom firings in a span of 6 months.
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#14I'm currently in late stages with Better, and holy crap is this company on fire (not in a good way). I've been using them for 3 months exactly, and on my 5th advisor. An advisor is your sole point of contact for the loan... questions, concerns, documents, everything. They don't tell you when the advisor changes, you just notice by chance the little initial emoji of your advisor changed. Realize this means the previou…
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Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#15I wonder if Softbank demanded this because of what happened at WeWork?
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#16How does better.com make money? what is their business model? The site says they charge zero commissions & lender fees - does this just apply to the loan recipient? maybe it's just commission from the lenders?
Commission from lenders is how fee free brokers work, I gather. I used one once and they were fairly transparent about how it works.
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#17wow! Phrasing! Are we still doing phrasing?
Alternate title: CEO personally guarantees company financing
"The CEO believes in his struggling company, although it theoretically means he could have an excuse to sell a bunch of Better.com shares or personally declare bankruptcy, this CEO has 5x as much cash and is probably swimming in less debt than most of the middle class."
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#18Given that the CEO is probably worth nowhere near $750MM absent his founders stock, isn't this just him just leaning into a binary outcome? Either Better.com can pay off the loan in 5 years or it's gone broke by the and he gives up his share in bankruptcy. I mean, it cuts out the "just squeaking by" option as him having to give up all his equity in something that was worth hundreds of millions is a big kick in the te…
A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.
> net worth is ~4B
net worth is not the same as liquidity
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#19How does better.com make money? what is their business model? The site says they charge zero commissions & lender fees - does this just apply to the loan recipient? maybe it's just commission from the lenders?
Better is a direct lender, not a broker. They make their money from the spread between the rate/points offered to the user and the price they can package and sell the loan for.
Re: Better.com CEO Vishal Garg says he is personally liable for $750M SoftBank loan
#20Earlier quoted context omitted.
A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.
> net worth is ~4B net worth is not the same as liquidity
Net worth is the more relevant value for a loan guarantee.