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On its first day, investors cheered as Webvan’s market value soared, rising 65 percent to about billion at the close. Below two years later, Webvan was broken.
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This is claimed to also cause a stress on top of the lenders, because in many cases they are usually forced to supply current loans, so they will don’t go unpaid inducing the loan to try into default, in turn causing banking companies to lose even cash.