A fintech CEO is trying to raise more than $1 billion to fund bridge loans for startups impacted by the Silicon Valley Bank collapse
"We are working quickly with third-party capital providers and Brex Asset Management to have emergency funds available to startups early next week," the spokesperson said. TechCrunch reported
. But Dubugras told the outlet he hopes any customers who take on loans will remain with Brex after the dust settles. "The reason we're doing it is obviously we want to support a community, that's very important," Dubugras told TechCrunch."The business reason we're doing this is because we'll fund these loans and our business accounts, and we hope people stay our customers right after that."
One major question facing the plan is fraud, and vetting the companies which have applied for bridge loans. In a statement to Insider, the Brex spokesperson said the company has a strong assessment process, while Dubugras told TechCrunch most of the requests appear to be from"real startups that had real businesses with real deposits."
"[T]here are verification processes in place to ensure there is no fraud," a spokesperson told Insider. Sign up for notifications from Insider! Stay up to date with what you want to know.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Moody's downgrades credit ratings on Silicon Valley Bank, SVB FinancialRating's agency Moody's on Friday downgraded the ratings of SVB Financial Group and its bank subsidiary, Silicon Valley Bank.
Read more »
SVB Collapse: Silicon Valley Bank is biggest US bank failure since 2008 crisisSilicon Valley Bank is the biggest US bank failure since Washington Mutual during the 2008 financial crisis
Read more »
Cardano Founder Says Algorithmic Stablecoins Are Essential for Bitcoin (BTC) to Achieve Its VisionCardano founder: Algorithmic stablecoins essential to realize Bitcoin (BTC) vision BTC $BTC ADA $ADA CardanoADA CardanoCommunity
Read more »
SoFi CEO Noto makes ‘opportunistic’ million-dollar stock purchase as SVB crisis fuels selloffAs SoFi shares fell Friday amid the fallout over Silicon Valley Bank's collapse, the financial-technology company's chief executive bought up stock.
Read more »
What SVB's CEO said just last weekSilicon Valley Bank CEO and president Greg Becker was interviewed on stage at the annual Upfront Summit in Los Angeles, by The Information reporter Kate Clark. Here's what he said when asked about the simmering concerns.
Read more »