VC 'Option Bet' Backlash: Menlo Founder Defends Fund That Covered Payroll During SVB Collapse
mmurph · x · 2026-10-06
A VC dispute is brewing over Menlo Ventures' "option bet" framing for AI investments. Founder Teddy Ferrin defended the fund: when his cash was frozen in the SVB debacle, Menlo GPs personally put up money to make payroll — even though he wasn't a fund-maker at the time. "A fund like that is A-ok by me."
Investor mmurph (Menlo) added that earning an "option" to double down must be proven daily to founders, and that reputation through up and down cycles carries enormous weight: "People talk — please talk to Ted!"
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