Chapter
The Impact of VCs on Startups in a Downturn
24:55 - 28:51 (03:55)
Chamath Palihapitiya, Founder and CEO of Social Capital, discusses how VCs stopped giving companies money in the market downturn, but didn't do enough work to help founders cut burn, leading some young capital allocators to try venture debt as a last ditch effort.
Clips
Venture Capital firms generate returns by loaning money to startups, underwritten by investors continuing to invest and succeed in the startups, allowing VCs to take valuable warrants in the startups.
24:55 - 26:06 (01:10)
Summary
Venture Capital firms generate returns by loaning money to startups, underwritten by investors continuing to invest and succeed in the startups, allowing VCs to take valuable warrants in the startups.
ChapterThe Impact of VCs on Startups in a Downturn
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The practice of using banking deposits to fund risky loans wrapped into warrant coverage, known as depository venture debt, raises systemic risk for the banking system.
26:06 - 27:44 (01:38)
Summary
The practice of using banking deposits to fund risky loans wrapped into warrant coverage, known as depository venture debt, raises systemic risk for the banking system.
ChapterThe Impact of VCs on Startups in a Downturn
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
VC's, amid a market implosion, stopped providing companies with money and didn't put the necessary work towards helping founders cut burn fast enough.
27:44 - 28:51 (01:06)
Summary
VC's, amid a market implosion, stopped providing companies with money and didn't put the necessary work towards helping founders cut burn fast enough. Many VCs should have helped founders cut costs, sooner.