Tim Draper: Startups Can Mitigate Bank Failure Risk with Bitcoin
CryptoNewsTerminal Staff06 Jun, 2024
Tim Draper: Startups Can Mitigate Bank Failure Risk with Bitcoin
In light of the recent collapse of Silicon Valley Bank, venture capital investor Tim Draper emphasizes the importance for startups to consider bitcoin as a hedge against bank failure risk. Draper highlights the devastating impact the SVB failure has had on crypto startups with funds tied to the bank, leaving them unable to pay staff and meet expenses. He asserts that similar incidents are inevitable in the future. To mitigate these risks, Draper advises startups to allocate one-third of their corporate treasury to bitcoin, a move he believes will provide a degree of protection against bank failures.
