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I don't think this is uniformly true. Some startups definitely deposit $X-$XX MM directly into an account at SVB. Depending on a bunch of factors, these funds
by quesera 4y ago
I don't think this is uniformly true.
Some startups definitely deposit $X-$XX MM directly into an account at SVB. Depending on a bunch of factors, these funds can be risk for availability in the short term.
SVB's assets are not liquid enough to cover all of those funds, obviously. If depositors panic in a meaningful way (they have, and will continue to do so), then SVB will be under new management by Monday.
Startups' $XX MM will not be lost. Today's payroll might fail. Next week's will be fine.