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OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

businessinsider.com

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Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#51

Post by davidkuennen »

Waterluvian wrote: post #18
rdl wrote: post #16

Earlier quoted context omitted.

Not a lawyer, but I would be pretty comfortable with SVB -> personal account if you documented why and communicated about it in advance with board/counsel. (Obviously the next step would be opening a Chase/etc. account and sending the funds on to that, not using your personal account for company business on an ongoing basis, but a limited number of emergency transactions should be fine.)

Isn’t it generally a cardinal sin of business finance though?

Interesting that its viewed so critically in the US.

If documented its no problem and not uncommon at all in Germany.

In fact many business owners pay something like credit card bills personally and reimburse through the company later.

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#52

Post by benatkin »

ralph84 wrote: post #14
brunooo wrote: post #4

One of those rare opportunities to clearly assess VCs from the outside, and surprisingly good steady reaction by him and Khosla. Who else?

Khosla’s legacy is trying to privatize public beaches. Nothing he does will make people forget that.

Also don't forget about openwashing and potentially helping Microsoft dominate again* on sama's side. https://en.wikipedia.org/wiki/Openwashing

* one of the last things I want

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#53

Post by xyzzy123 »

Waterluvian wrote: post #18
rdl wrote: post #16

Earlier quoted context omitted.

Not a lawyer, but I would be pretty comfortable with SVB -> personal account if you documented why and communicated about it in advance with board/counsel. (Obviously the next step would be opening a Chase/etc. account and sending the funds on to that, not using your personal account for company business on an ongoing basis, but a limited number of emergency transactions should be fine.)

Isn’t it generally a cardinal sin of business finance though?

It's an "antipattern" (and usually a strong sign that something is badly wrong) but it's not illegal... "sinful" is a useful hint that something is "norm" related.

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#55

Post by dboreham »

breck wrote: post #24
gfsdgsfgfds wrote: post #19

Earlier quoted context omitted.

It is not. SVB account is frozen. Nothing in or out. Wire had to land March 13th so had to be sent Friday.

A wire on the 13th lands on the 13th.

An actual "wire" transfer yes, but op may have meant ACH.

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#56

Post by netdur »

roboy wrote: post #41

Q from outside the US: why is capital needed for payroll mid month? Are there some automatic insolvency processes if it is missed by a day? Why do the companies fall apart if there is just a few days of payment delay? (I mean it is obviously a shit situation, and having to tell the team payment might take a few days more than usual is bad, I am just surprised how 2 days of no-cash seem to wreak havoc…)

I don't know but... some companies used to pay me biweekly, every odd monday, then there is company used to paid me once end of month and another paid once per month but in middle of month, with limited accounting resources they pay bills twice, first of month for outside and middle of month for salaries and stuff

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#57

Post by brunooo »

phphphphp wrote: post #33
brunooo wrote: post #4

One of those rare opportunities to clearly assess VCs from the outside, and surprisingly good steady reaction by him and Khosla. Who else?

Maybe it’s not fair to compare Garry Tan to sama in this situation because Garry is the current president and sama is the former, but, it’s nice to see sama’s measured response compared to Garry’s. Garry is shouting from the rooftops that more than a million jobs are going to be lost if the fed doesn’t immediately do something (that we all know it isn’t going to do). I wouldn’t want to be a YC startup right now, list…

Being in an active leadership position makes his decision to spend time on live-streaming panicky half-baked takes … worse?

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#58

Post by grey-area »

phphphphp wrote: post #33
brunooo wrote: post #4

One of those rare opportunities to clearly assess VCs from the outside, and surprisingly good steady reaction by him and Khosla. Who else?

Maybe it’s not fair to compare Garry Tan to sama in this situation because Garry is the current president and sama is the former, but, it’s nice to see sama’s measured response compared to Garry’s. Garry is shouting from the rooftops that more than a million jobs are going to be lost if the fed doesn’t immediately do something (that we all know it isn’t going to do). I wouldn’t want to be a YC startup right now, list…

The fdic and fed probably will do exactly what Gary Tan and many others recommended - no bailout of the company or shareholders but organise a facility so that the depositors get 100%.

They’re trying to sell it first but if that doesn’t work they don’t really have other options if they don’t want to be dealing with massive job losses and multiple bank runs next week.

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#59

Post by physicsguy »

rdl wrote: post #49
roboy wrote: post #41

Q from outside the US: why is capital needed for payroll mid month? Are there some automatic insolvency processes if it is missed by a day? Why do the companies fall apart if there is just a few days of payment delay? (I mean it is obviously a shit situation, and having to tell the team payment might take a few days more than usual is bad, I am just surprised how 2 days of no-cash seem to wreak havoc…)

Most companies in the US do payroll on either a 2 week cycle (which sucks because some months you do 3 and some times you do 2), or 1st and 15th (or otherwise twice a month). March 15 is a very common payroll date. They're batch processes, done by dedicated payroll firms, since there are lots of tax/other obligations as well. Missing payroll by even one day causes 1) lots of drama with employees 2) starts some legal…

Quite interesting, here in the U.K. it’s generally monthly payroll, usually towards the end of the month, something like closest working day after the 25th is common

Re: OpenAI CEO Sam Altman sent startup six-figure loan after SVB collapse

#60

Post by loeg »

roboy wrote: post #41

Q from outside the US: why is capital needed for payroll mid month? Are there some automatic insolvency processes if it is missed by a day? Why do the companies fall apart if there is just a few days of payment delay? (I mean it is obviously a shit situation, and having to tell the team payment might take a few days more than usual is bad, I am just surprised how 2 days of no-cash seem to wreak havoc…)

> Q from outside the US: why is capital needed for payroll mid month?

The US largely does payroll biweekly (every two weeks). Sometimes weekly, although usually not in tech. It isn't like Germany or whatever where payroll is only once a month.

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