The influential investors that back startups pushed for government action and took other emergency measures Sunday to avoid the growing threat of furloughs if startups with money tied up at Silicon Valley Bank can’t meet payroll this week.
As the government auctioned Silicon Valley Bank’s assets, some lobbied lawmakers to suspend the California state law that would require companies to furlough employees if they can’t pay them. Other wealthy venture investors, including OpenAI CEO Sam Altman and Khosla Ventures founder Vinod Khosla, offered a more immediate solution: writing personal checks. These added to a growing list of backstop measures hastily conceived to help startups get money ahead of March 15, when many companies make twice-monthly payroll.
