591–600 of 864 posts
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We are advocating better regulation to prevent this from happening in the future. It's in the petition.
You really have this non-answer thing down. If the business thing doesn't pan out you could certainly pivot to politics.
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The bailout would most likely benefit the VCs and their funds. It’s not about helping employees who might be living paycheck to paycheck.
Regardless, there are people in this world living on 30 USD per month (or less). I don't care you chose to pay 8k rent per month. This is the wakeup call so many people needed.
Did an admin just edit the title from: "YC is asking for a bailout" to: "Urgent: Sign the petition now" ??
I don't like neither title. If I has infinite power, I'd use the other part of the title, something like "Petition: Thousands of startups and hundreds of thousands of startup jobs are at risk"
Might seem like an ahole but can't you guys making 100k+ per year ride it out? We are talking about startup a here, have we forgotten the risks and implications that come with this model?
Should developers really be paid $300k a year? Why is it so high compared to a career manager in a bank who will cap out at $120k, after wrecking his health with cocaine to sustain the incredible pace for 25 years? This crisis may make deflation happen, if developer salaries deflate.
YC has taken significant positions in their portfolio companies, which they rightfully boast are worth something like a collective $140B. They've also strongly encouraged their portfolio founders to use SVB, which made sense until the precise moment it didn't. What I don't understand is why YC itself doesn't allocate what appears to be a painful but survivable amount of its profits and bail out its own portfolio comp…
surely you're not suggesting that bailing out companies they've invested in should be considered part of the a giving pledge? how would that be at all philanthropic? that's just self-interest.
FWIW, my thought process (I should leave being a comedian to comedians) is that this is sort of like kids asking for their inheritance early.
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You are in the top 1% and you are asking for a government bailout. Everyone knows that amounts over $250K were not insured. These are not "innocent depositors". A lot of my portfolio companies are affected, but I will not lobby for a government bailout on their behalf. It's not the right thing to do. I 100% agree with you on lobbying for an expedient process, but if these companies have to take a haircut, they have t…
> Everyone knows that amounts over $250K were not insured. This is technically true, but I think there's a feeling that traditional banks are de-facto safe places to keep money. Depositors losing money in bank runs feels like a 19 20's problem.
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Startups have been anything but “socialized losses”. They’ve literally been the growth engine of the country for the past twenty years. According to Brookings, “Annually, venture investment makes up only 0.2% of GDP, but delivers an astonishing 21% of U.S. GDP in the form of VC-backed business revenues.” https://www.brookings.edu/research/as-the-venture-capital-ga...
What growth engine? How many tech companies founded in the last 15 years are actually consistently profitable? The only one that comes to mind of note is AirBnb even if just started turning a profit.
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What is the incentive for someone to buy SVB? Just to stop the spread of contagion or is there any scenario in which that was a profitable move?
If you're well-capitalized, so you can weather the bank run, and have time, you might be able to sell SVB's assets for more than their liabilities.
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Who cares if it's 99% of GDP of that is going into the hands of venture capitalists?
Anyone who has really looked at the 2nd order effects. SV-style tech startups distribute more equity to employees than any other sector of business I know of and the average VC’s returns are worse than private equity, worse than the stock market and worse than real estate. You only hear about the biggest winners, but venture capitalists are taking on very long odds and the vast majority lose. More importantly, we all…
Cell phones were not created by tech startups.