> <i>“We remain very well capitalized and have sufficient capital to reach profitability, without having to raise additional capital,” Walsh said.</i><p>Fun aside: when I was a trader following the financial crisis, we'd play a parlor game counting the number of times a bank said "capital" in press release and on earnings calls. The more times, the more fucked. This sentence would have been a winner.
Wow, they raised 500 million at a 2.5 billion valuation, but now has their value estimated by some analysts at 450 million. And that's with a not-too-shabby quarterly revenue of 22 million. This highlights what a terrible position unprofitable companies that rely on funding are in right now in this market.
It's never been clear to me what advantage these totally virtual banks have over an account at a local bank or credit union with a real local brick and mortar presence and real people who can help you face-to-face with any issues.
I was unfamiliar with the bank, but figured I should be based on it appearing in HN front page.<p>It looks to be a branchless/online-only American bank (despite living here for many years, I don’t know if branchless is common/uncommon here?)
Averaging the number of employees at the end of the first quarter and those at the end of the current quarter and applying the salaries reported paid I arrive at a quarterly salary expense of 40,000$ a quarter or $160k a year, which surprised me a bit.
So does anyone have a sense of what this means if you have an account with Varo? I mean, they are FDIC insured, so if they go under, is it just a matter of time until one gets their funds back?