“We literally couldn’t fundraise”: Why wealthy VCs won’t save struggling startups

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Amid the coronavirus crisis, startups have gotten flack for applying for Paycheck Protection Program loans. But many have no choice but to ask for a government bailout when their VC funders are unable to help prevent layoffs. Criticism of venture-backed tech startups for taking part in the government’s coronavirus bailout loan program has steadily grown since the first $349 million tranche of funding was exhausted on April 17. With millions of Main Street small businesses laying off employees, some have asked why tech startups with rich VC backers should be among the first to receive the forgivable Small Business Administration loans. After all, can’t VC-backed startups just ask for more funding from wealthy investors? Read Full Story

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