When founders scrambled to make payroll after the closure of SVB, some VC firms promised to help — but only a few actually wired money.
Over that frantic weekend, venture capital firms scrambled to respond to the crisis. Some found creative ways to ensure their founders would have access to cash on Monday, at times offering up their partners’ personal funds. More set up contingencies to make loans if necessary, then hoped it would never come to that. Still others chose not to make such an offer, or failed to reach a consensus at all.
When Alex Lorestani, CEO of startup Geltor, which provides vegan proteins for beauty product makers, started receiving emails from his investors last Thursday, most of them were one-liners. “They just asked, ‘hey are you exposed?”exposed, its payroll funds tied up at SVB, with a transfer attempt to Mercury still pending.
. “It was an extraordinary measure of compassion and supporting entrepreneurs during a terrible moment,” Mansuri told. He ended up not taking any money, nor did any Redpoint founders, a source with knowledge added.
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