Photo by Mariia Shalabaieva on Unsplash
The collapse of the Silicon Valley Bank (SVB) has left many in sheer panic, including the tech industry, which relies on the bank’s financing.
Since the Federal Deposit Insurance Corp. (FDIC) has taken control of the bank’s deposits, nearly half of those U.S. venture-backed tech companies pulled deposits out of the bank.
The uncertainty of the situation left the majority of people with unanswered questions, so they took their concerns and thoughts to Twitter.
Here's how SoCal is reacting to the news:
Just announced by FDIC and Fed: "Depositors will have access to all of their money starting Monday, March 13." https://t.co/OZnQWKJLVe
— Sly Spencer Lee ☯︎ (@slyjacklee) March 12, 2023
My main learning from the SVB take firehose is that very few ppl outside of tech view funded early stage founders as scrappy underdogs instead of the bourgeois
— Luke Metro (@luke_metro) March 12, 2023
Thank the Lord that our government was able to navigate this situation with only two banks going under -- this was about to spiral out of control.
— @jason (@Jason) March 12, 2023
#BREAKING: 12 days ago, Gregory Becker, the CEO of Silicon Valley Bank, sold 11% of his shares
Daniel Beck, the CFO, sold 32% of his holdings
CMO Michelle Draper sold 28%
Something doesn't seem right... pic.twitter.com/T7xzb2w2jb
— Mario Nawfal (@MarioNawfal) March 11, 2023
Why is this so difficult to understand:
bailing out (as in stopping water from drowning) startup CEOs/employees of all backgrounds/walks of life who make $0 - $150k/year in most cases and are customers of SVB…
≠
bailing out millionaire profiteers who own or run SVB.
— Arlan 👊🏾 (@ArlanWasHere) March 13, 2023
Because SVB had no equal.
There was no other bank that would lend to so many tech founders, who tend to be young and have limited credit history.
It also provided a wide huge range of products - venture debt, venture capital, bridge loans, and mortgages for founders. https://t.co/doSBmGYu5l
— Ben Bergman (@thebenbergman) March 12, 2023
So yes, Silicon Valley Bank issue matters, but not because of contagion or the tech sector (which I think is doomed anyway). But because it has forced the Fed to pivot precisely as its window of opportunity to remain hawkish closes.
— Marko Papic (@Geo_papic) March 13, 2023
SVB: "We have a Chief Diversity, Equity and Inclusion Officer, an executive-led DEI Steering Committee and Employee Resource Groups." SVB went without a chief risk officer (CRO) from April 2022 to January 2023 https://t.co/2uvvpbfrTH #SVB #BankCrash
— Roger Meyers (@Roger_Meyers) March 12, 2023
#BankCrash Really have to ask yourself a serious question here. Is your money safer in Bitcoin that you can self-custody, or the bank? The money in the bank is not yours and it's not risk free. #BankCrash #bitcoin #invest #HunterBiden
— Lisa Demski (@whitelane120) March 12, 2023
1/ We are all still digesting the weekend’s events. #SVBCollapse #BankingCrisis
Some thoughts on where we go from here 🧵👇
— Spencer Rascoff (@spencerrascoff) March 13, 2023
I just checked. I’m set up for daily deposits or used to be able to (request now) don’t see it?
I’m still waiting for funds on Items I sold last week and should had funding before the weekend
Now it says March 14@Etsy #EtsySeller
— The ULTRA Craftsman 🇺🇸🔨☢️ (@LeatherJoseph) March 13, 2023
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