Texted a Seed series founder about their situation last night, response being, “Had a busy couple days, but I was fast and wired out the money yesterday AM and the wires posted. Still a couple mil locked up, but they’re in money market funds, so should be good. I was part of the bank run I guess.”
The collapse of SVB is large and quantifiable, but they supported an unquantifiable an outsized number of venture backed companies who have payroll coming up March 15th that may not have capital to pull from now. Normally, payroll is the biggest expense too. For those in this stiuation:
1/ Hopefully your VCs already shot you a note volunteering to front your payroll. If not, ping them.
2/ Check out short-term debt facilities, or invoice backed lines of credit (factoring loans can be done in ~7 days).
3/ Look up other co’s doing emergency outreach (i.e., Brex): https://lnkd.in/g-jADSvq
Lastly, things like (i) extending payables, (ii) renegotiating terms with vendors, (iii) accelerating receivables collection, and (iv) asking customers to prepay early for a discount may help, but that likely was already being done (should it be needed) and could be more wishful thinking given the crunch.
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