Startup ecosystem is safe. VCs are very motivated to put everybody in the same basket here - small depositors, startups, themselves... FDIC is VERY efficient.

Startup ecosystem is safe. VCs are very motivated to put everybody in the same basket here - small depositors, startups, themselves... FDIC is VERY efficient. Most probably, the bank will be open on Monday morning, albeit with another owner, and most small depositors and startups wouldn't even notice if it's not for all these 'breaking news'. The guys that are on the hook here, and their exact job is to manage money, are the VCs. They will most probably loose a relatively small percentage of money (say 10%).