Equity Aaron Burr’s tech angle, blue skies, and no photos at this time
May 5, 2023
The collapse of startup banking partners shakes the financial landscape, revealing the vulnerabilities startups face. Discussion shifts to the rise and fall of Poparazzi, a once-trendy social app, and the implications of Databricks' recent acquisition. A heated rivalry brews between Finix and Stripe as fintech dynamics evolve, while the troubling trend of down rounds hints at shifting funding landscapes. BlueSky enters the fray as a Twitter competitor, but doubts linger about its future. Listen in for insights and updates on the ever-changing startup world!
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First Republic Bank Collapse
- First Republic Bank's collapse, following Silicon Valley Bank's, significantly impacts the startup ecosystem.
- The startup community's reaction was muted due to the prior experience with SVB.
Loss of Bespoke Banking
- Startups worry about losing personalized banking relationships with the closure of SVB and First Republic.
- These banks offered specialized services and understood the unique needs of startups.
Poor Investment Choices
- Both SVB and First Republic made poor choices during the low-interest-rate environment.
- SVB invested heavily in low-yield treasury notes, while First Republic held low-interest mortgages, leading to significant losses.