One investor believes in Coinbase's future, but isn't so sure it's going to be a good investment in coming years.
While intervening in bank runs limits the damage, it dilutes the incentive to guard against financial risks
In late 2020, Silicon Valley Bank vice-president Armando Argueta offered a word of caution to any start-up founder considering loans from less-established lenders. Since SVB’s collapse earlier this month, founders are learning the hard way how true those words are. The bank was the pioneer and linchpin of a venture debt market that gave start-ups an alternative source of funding, without the need to sacrifice equity stakes or swallow a much lower valuation.