Hey there, tech founders and operators! In my previous article, I covered Silicon Valley Bank's recent demise and how every startup CEO and CFO should manage the crisis in the immediate term to avoid a delayed crushing impact on their company. In case you missed it, you can catch up here;
I agree with you that there is a need to work with newer banks. In fact, all digital or neo banks are new too. I will advise that startups build partnerships but ensure they diversify their assets and cash across different banks. Also, it is important to ensure legal documents, indemnity and appropriate corporate governance measures are taken into consideration when choosing a bank.
But if new startups only work with established banks, what is going to be the market for new banks?
This would mean they’d have paucity of customers or nothing.
Hi Bukola,
I agree with you that there is a need to work with newer banks. In fact, all digital or neo banks are new too. I will advise that startups build partnerships but ensure they diversify their assets and cash across different banks. Also, it is important to ensure legal documents, indemnity and appropriate corporate governance measures are taken into consideration when choosing a bank.
True. I agree with you on that. Nice article Taiwo.
Thank you!