Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

businessinsider.com

Post reply on HN
Print view View original

101–110 of 124 posts

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

#101

Post by icelancer »

dragonwriter wrote: post #92
phphphphp wrote: post #67

Earlier quoted context omitted.

“If you receive a late paycheck, California Labor Code 210 requires employers to pay a penalty of $100 for an initial violation.” Severely is overselling it.

Its $100 if it is both a first offense and not willful. For any willful or intentional delay, or a second or subsequent late paycheck regardless of willfulness, the penalty is $200 plus 25% of the payment that was due. (And if any terminal paychecks are late, there are greater penalties – waiting time penalties equal to an average days pay for each day of delay up to 30 days – though I don’t recall if there is a wilf…

The link I found undersells it, too. In some cases, the corporate veil can be pierced and executives can be made personally liable.

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

#102

Post by Balgair »

Related: Unfortunately, this tends to be a common fallback in many business when times are tough. My folks had to do this with their employees a few times when I was a kid. Other people in that industry had to too, from time to time.

As other commenters state, if you know that a boss does this for you, then you now know a good boss to have. Though, most bosses won't tell you they did it, obviously.

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

#103

Post by kkielhofner »

ttsgeysygd wrote: post #89
kkielhofner wrote: post #80

Earlier quoted context omitted.

Given the disaster and nearly unprecedented nature of these events I doubt anyone would bat an eye at a CEO taking the decisive action to do what needs to be done to survive (and fix it later). For many the past few days have been the startup equivalent of "fog of war". As others have noted it's not embezzlement/commingling and given the scenario "Wire out from SVB corp account to personal, document exact amount, and…

FWIW, on Thursday it wasn’t clear to me I had so little time to get money out and part of me felt like contributing to a bank run, before it was clear there was a bank run, was not being a good citizen. Still not sure how I feel about it all. SVB staff were great over the 10+ years we banked there. Tech was always crap but I liked the people. Very sad all around.

That's where I was.

My startup has about $25k in SVB - but we don't have payroll and I have personal access to that without impacting me if push came to shove (paying contractors, etc). I was aware of the situation and probably could have gotten the funds out but I knew we were well below the FDIC threshold and just didn't want to bother with it (frankly). I would have had more anxiety executing the wire and waiting for it to show up on the other side...

Speaking personally I'm actually kind of curious to see what the FDIC process looks like - in the grand scheme of things it makes you part of a relatively small club! While I know people are suffering and the situation is a lot worse for many I'm actually looking forward to telling the story when appropriate.

The general population is already fascinated by startups and I've had more than a few "civilian" friends reach out to me asking about the SVB situation. When I tell them we're kind of impacted but not really they just kind of chalk it up to another "Wow, startup life is so wild even THE BANK failed".

Additionally I'd say the same - through various startups I've worked with SVB for over 15 years and the people have always been great (systems not so much).

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

#104

Post by manuelmoreale »

rdl wrote: post #73
physicsguy wrote: post #59

Earlier quoted context omitted.

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

In Puerto Rico (where I live) there's an even weirder system -- people usually get/expect (and certain classes of employment obligate) a "13th month" check. Pretty common in LaLtAm; exists in some of Southern Europe too.

Some contracts are even getting a 14th one. 13th is fairly common in Italy and it’s usually bundled together with your December one.

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

#105

Post by kfrzcode »

0xEFF wrote: post #74
kfrzcode wrote: post #36

Earlier quoted context omitted.

If you're not a lawyer, in this case, it's not really relevant what your comfort level is with business dealings. If you're a professional with appropriately relevant skills and expertise, I'd rescind my comment.

I’m a business owner with payroll married to a attorney. I’m comfortable doing exactly as GP described to make payroll.

Thank you; contextually I must rescind my previous comment.

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

#106

Post by loeg »

dragonwriter wrote: post #97
loeg wrote: post #60

Earlier quoted context omitted.

> 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.

> The US largely does payroll biweekly (every two weeks). Weekly, biweekly, monthly, and semimonthly are all common; In most states, there are rules setting minimum frequency (and sometimes regulating on what days as well as frequency), and they may vary by industry and job type. E.g., for California: https://www.dir.ca.gov/dlse/faq_paydays.htm

I believe biweekly (or semimonthly, which is very similar) are more common than the others, at least in tech.

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

#107

Post by samgtx »

paxys wrote: post #64
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?

Is there the opposite list? VCs like Ackman, Sacks, Calcanis, Cuban all firmly belong on it. Nothing from them but blame directed at others (biden, yellen, zelinsky, the fed, fdic, regulations – everyone but themselves), dangerous misinformation (including fake photos and videos of bank runs), and demands for an immediate government bailout. I wish someone would compile a video of how quickly these "rugged libertaria…

If someone created a twitter bot right now that was able to pull old hard libertarian tweets from these people and post them as replies that would be...entertaining. Hypocrite-bot?

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

#109

Post by grey-area »

phphphphp wrote: post #78
grey-area wrote: post #58

Earlier quoted context omitted.

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.

That’s not necessary though unless we are to believe that a meaningful amount of money has disappeared. The FDIC offers insurance with a limit for a reason, it’s a fantasy to believe that the FDIC are going to invent a brand new standard of deposit protection because some companies might be forced to take a small haircut on their money. The bank will re-open, companies will get most of their money, and life will carr…

I'm not sure it's as simple as that if the fed don't guarantee deposits, but we'll see tomorrow I guess. The impression I had was these assets can't just be sold right now, today, without booking substantial losses.
Post reply on HN