2008 Mortgage lending vs 2021 shitty startup (Crypto, AV) lending Most of these startups are burning cash borrowed @ cheap rates. Will we see a wave of bankruptcies in startup world and VC withdraw cash from banks? Isn’t that what’s happening? 10 million new business.. and with high interest rates wait for the black swan event.
This time is different
VCs can withdraw money from startups as well. Who knows what’s in the contract and tomorrow companies like Uber Twilio etc might have funding pulled which they label as cash on their balance sheets
No, only way would be to go through directors vote- if VC owns voting power they basically own the company. In that case it’s no different than closing a company and selling assets by owner. There is no guarantee that they’ll get full refund- probably not - and just kill the business they have invested in.
Crypto or AV did not cause this - you agree to that right? It would happen even if there was no crypto.
Yep, just the majority on ones that mushroomed during pandemic.
That's PPP loan fraud ones
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