with serial entrepreneurs Venture capitalist Garry Tan is less than three months into his new job as CEO of Y Combinator, one of the most well-known accelerator programs in technology. And it seems like it’s been an eventful onboarding process so far. YC, like almost everywhere else in the startup world, was affected by the Silicon Valley Bank debacle. His 30% of companies are at risk through his SVB and at risk of not being able to pay salaries. he tweeted on saturday.
Investors urged Congress to act more decisively to save SVB, which was acquired by regulators on Friday. Mr Tan said to Secretary of State Janet Yellen, Chairman Martin J. wrote a petition seeking remedies and attention to the imminent serious consequences of The petition is signed by more than 600 of his CEOs and founders from companies like Alloy Automation, Atoms, Flutterwave and Brex. The Brex CEO is now looking to raise $1 billion to provide an emergency credit loan over the weekend.
“We are not asking bank shareholders or management to save us. We are asking them to save innovation in the American economy,” the petition reads.
The memo calls for two things: SVB’s small business depositors want regulators to be complete with implementing backstops, Congress wants “stronger regulatory oversight and capital requirements for local banks, and To recover the misconduct or mismanagement of SVB executives”. The cause of this failure needs to be investigated. ” YC asks people to fill out her Google form. “
The rapid evolution of the SVB situation caught many off guard, but early on, Tan told the YC company: According to the insider screenshots seen by TechCrunch, this year he can bolster your startup by not exposing him to more than $250,000 exposure.
24 hours after saying that Tan said on Twitter “This is an extinction level event for startups and will set startups and innovations back by over a decade. BIG TECH doesn’t care about this. They have their cash elsewhere. Otherwise, every small startup, tomorrow’s Google and Facebook, will be dead.”
According to Tan’s note on Saturday, he seems to be taking the first steps towards finding a fix for it.
