Silicon Valley Startups Aren't Financing Startups

Roku's CFO announced over the weekend that $487 million of its cash was sitting at Silicon Valley bank. A sequoia partner Michael Moritz wrote a piece for the Financial Times claiming that startups just couldn't deal with big banks as big banks don't understand founders. The fact that so many Silicon Valley companies were holding all of their cash uninsured at one bank indicates a shocking level of financial incompetence and it's even worse that their VC investors advised or encouraged them to do this. No wonder sequoia were so impressed with FTX and some bankman freedes everything up in which you would one day be able to buy a banana.