Chapter
The Unpredictability of Venture Debt Models
17:32 - 24:55 (07:23)
The effectiveness of venture debt return models over the past decade may not accurately predict future returns, and the current regulatory treatment of 10-year bonds is questionable. Regulators allowing banks to loan out customer deposits to startups with no credit also poses risks.
Clips
The lack of governance within some companies has led to a popularity contest rather than holding board members accountable for their actions.
17:32 - 20:00 (02:28)
Summary
The lack of governance within some companies has led to a popularity contest rather than holding board members accountable for their actions. It's important for investors and partners to ensure the company has enough funding to survive for a few years before taking on new rounds of funding.
ChapterThe Unpredictability of Venture Debt Models
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The regulatory treatment given to the 10-year bonds is unusual as buyers of these bonds don't have to recognize the loss until they sell them.
20:00 - 23:04 (03:04)
Summary
The regulatory treatment given to the 10-year bonds is unusual as buyers of these bonds don't have to recognize the loss until they sell them. The regulators need to tighten the transparency required for this sort of treatment of bonds.
ChapterThe Unpredictability of Venture Debt Models
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The return models on venture debt created over the last few years may not be a good predictor of returns for the coming years.
23:04 - 24:55 (01:51)
Summary
The return models on venture debt created over the last few years may not be a good predictor of returns for the coming years. Also, the speaker talks about how banks loaning deposits for venture debt is a questionable practice regulated by regulators.