I spent last weekend checking in with my portfolio companies to see their exposure to SVB. I have quite a few US and Indian companies in my portfolio, and SVB was something of a benchmark for the tech industry.

The result: Apart from one company with 90% exposure, the others had managed to transfer their funds in time or had no exposure over $250k at SVB.

The US response was incredible—big applause! But we had a really close call. This will inevitably impact how entrepreneurs behave. Everyone now understands that banking risk is real.

Human error exists in every field, and the funding climate was already tough... but it’s not going to get any easier! VCs had a scare, too!

While we recover from all this, funding will continue to be complicated.

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How do you choose the right bank as an entrepreneur?

Getting back to banks, bankers are true partners for entrepreneurs. They are the partners who stick around when your startup is profitable and you no longer need equity.

Choosing a bank is now a real issue—at least for the coming months! In France, we are lucky to have solid banks and the BPI!

Entrepreneurs need to know this and value their bankers just as much as their investors.

Diversify your banks to prepare for growth.
Send regular reports to build a relationship of trust.
Distribute your cash flows fairly. If I had one last piece of advice for those of you with multiple banks, this would be it. It’s the key to a long-term partnership.

Can you think of any other tips?

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