As we are looking for additional capital to secure our new IM+ related project, yesterday I visited a bank in Manhattan. Namely, the Silicon Valley Bank, recommended by a good friend of mine.
SVB guys were very friendly to me. I learned that the best way to get a credit at SVB is to be a VC-funded company. What?! So, the trick is not to be profitable or to have millions of users like we at Shape but much more to have right connections and to be founded on a right way.
I hear also here and there about strange M&A deals where a VC is involved in both participating companies and valuations are somehow shady.
Isn't it a good time for federal investigators to take a more critical look at VC practices, same way like they do in case of hedge funds, e.g. Galleon case that was brilliantly described in New Yorker, what do you think?