Startup founder's alleged $175 million fraud spotlights inequality in finance, experts said

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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.

 

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“Run-of-the-mill small businesses often face more difficulty financing their operations than tech startup

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