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Sorry, how can they lever their VC funds, surely with VCs you’re getting highly speculative valuations and terrible liquidity? That sounds like a terrible thing to lend against?

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Not too many banks do it, but it’s conservatively done, 3-6pts above risk free and at 10-20% of collateral: https://www.bloomberg.com/news/articles/2022-03-18/as-tiger-...

It’s how you get here.

https://en.wikipedia.org/wiki/Minsky_moment

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