I should've said "terms", I suppose. They were offering package deals where you have to exclusively bank with them and in return you get below-market loans, line of credit and potentially investments, and allegedly also for your personal financing needs. Give all your cash, accept the FDIC-limit risk, get favorable terms in return.
Why else would anyone put all their money into a single account, and why would VCs even enforce doing so contractually?
When someone offers you something the market doesn't, you should understand that there's risk attached, especially when you're a company with millions or hundreds of millions in cash. When someone falls for some crypto "18% per year, no risk" scam, that's how we view it.
Why else would anyone put all their money into a single account, and why would VCs even enforce doing so contractually?
When someone offers you something the market doesn't, you should understand that there's risk attached, especially when you're a company with millions or hundreds of millions in cash. When someone falls for some crypto "18% per year, no risk" scam, that's how we view it.