On the last night of its existence, Silicon Valley Bank was hosting VC Bill Reichert of Pegasus Tech Ventures, who was giving a presentation on “” to about 45 or 50 people. Mike McEvoy, the CEO of OmniLayers, recounted the scene for me. “It was eerie over there,” he said. He saw a number of people exiting the building during the event, looking subdued.
Roger Sanford, the CEO of Hcare Health and a self-described “professional Silicon Valley gadfly,” was also there. “Everyone was in denial,” he told me. “The band played on.”emblematic bank of the tech industry was shut down by regulators — the second-biggest bank failure in US history, after Washington Mutual in 2008.
What happened is a little complicated — and I’ll explain farther down — but it’s also simple. A bank run occurs when depositors try to pull out all their money at once, like inexplains, sometimes the actual cash isn’t immediately there because the bank used it for other things. That was the immediate cause of death for the most systemically and symbolically important bank in the tech industry, but to get to that point, a lot of other things had to happen first.
Silicon Valley Bank provided that fuel, working closely with many VC-backed startups. It claimed to be the “financial partner of the innovation economy” and the “go-to bank for investors.” Among those banking at SVB:It fell in less than 48 hours.Most banks are insured by the Federal Deposit Insurance Corporation , a government agency that’s been around since the Great Depression. So of course, the accounts at Silicon Valley Bank were insured by the FDIC — but only up to $250,000.
That might be a lot of money for an individual, but we’re talking about companies here. Many have burn rates of
Lol click bait
Tech moved too fast and broke it? Lol! You’re a tech site, but your bias is showing.
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