What the founders think: Several of my colleagues took to the (virtual) streets and got the lowdown on how founders are reacting to the bank’s collapse.īefore the bank got shut down by regulators, a lot of things happened very quickly:įor you, special price: Manish and Ingrid caught wind that Silicon Valley Bank was in talks to sell itself.
So, er, what happened?: (TC+): Alex can be trusted to provide the context, and concludes that it seems like the rumor of SVB being in trouble caused a run on the bank, which put it in actual trouble soon after. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Regulators stepping in: Natasha M reports that the bank and its 17 branches were closed by the California Department of Financial Protection and Innovation.
In this special edition of the Daily Crunch, we summarize what the Sudden Value Bust means across the industry. A huge number of startups suddenly found themselves in a pickle as the bank went through a Swift-Velocity Breakdown.
