The megabank's apparent inability to properly assess the startup underscores the easy access to funding enjoyed by tech companies in recent years, some experts say.
Silicon Valley Bank, which specialized in working with tech clients in the region, helped fuel the investing surge.
"There's absolutely a double standard," Cole added. "The ease with which these companies get credit is different than the lending standards applied to small businesses." The banking crisis that followed the collapse of Silicon Valley Bank strengthened the role played by large banks like JPMorgan Chase, heightening the significance of their lending decisions as the financial industry weighs its approach to tech, Robert Hockett, a professor at Cornell Law School who studies banking, told ABC News.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A $175 Million 'Huge Mistake' - The Journal. - WSJ PodcastsWhen JPMorgan Chase paid $175 million to acquire Frank— a college financial planning startup— it touted big plans to connect with the company’s millions of users. Then it all went wrong. WSJ’s Melissa Korn recounts the story of what went wrong. Further Reading: - Frank Founder Faces Criminal Fraud Charges Over JPMorgan Deal - Frank Founder Says JPMorgan Knew How Many Users Firm Had in $175 Million Deal - JPMorgan Bought College Financial-Aid Platform for $175 Million—and Now Says Most of Its Users Were Fake
Read more »
Juul to pay California $175 million to settle lawsuit over marketing vaping products to teensBREAKING: The company will pay $462 million to six states and the District of Columbia.
Read more »
Juul agrees to major settlement with 6 states, with California to get over $175 millionE-cigarette maker Juul Labs Inc. will pay $462 million to six states and the District of Columbia, marking the largest settlement it has reached so far for its role in the youth vaping surge.
Read more »
Juul to pay California $175 million to settle lawsuit over marketing vaping products to teensIt's the highest amount of any settlement yet reached by Juul. The money will help California fund research, education, and enforcement efforts related to e-cigarettes.
Read more »
Sequoia leads funding round for legal generative AI startup HarveyExclusive: Buzzy legal generative AI startup Harvey taps Sequoia to lead funding round at a $150 million valuation
Read more »
Former PayPal president's startup is building tools to make using Bitcoin's Lightning Network easier.Lightspark revealed its product suite, which could also provide an alternative to 24/7 trading that ended with the demise of Silvergate and Signature banks.
Read more »