3 ms·
Hundreds of startups face 'extinction-level event' if no one buys SVB by Mon
- TMWNN 4y agoI had to shorten this headline to fit: "Hundreds of startups face a crippling cash crunch and an 'extinction-level event' if no one buys Silicon Valley Bank by Monday". From the article: >Even startups that didn't bank directly with SVB have been hit by its collapse. My Insider colleagues April Joyner and Madeline Renbarger reported the healthtech startup Flow Health used Rippling, which held an account with SVB, as its payroll provider. >"We literally have no way of paying employees right now," Flow Health CEO Alex Meshkin told Insider. >Some startups took drastic steps on Friday to try and bring cash in. The popular toy store Camp told its customers it was in distress after its funds got trapped by the collapse. [...] >The company announced a 40% off sale in a bid to raise cash from its customers, instructing them to use the tongue-in-cheek code 'BANKRUN' at the checkout. Another article, "A startup founder sat in an airplane bathroom trying to move his company's funds out of Silicon Valley Bank after its collapse. Here's how 7 other founders reacted to the bank's implosion." <https://www.businessinsider.com/silicon-valley-bank-collapse-startup-founder-reactions-2023-3 https://www.businessinsider.com/silicon-valley-bank-collapse...>: >Donnel Baird, the founder of the climate-tech startup BlocPower, found himself having to figure out how to transfer funds while on a flight with faulty Wi-Fi. Though SVB wasn't BlocPower's primary bank — the company had less than a month's worth of payroll in its account there, Baird said — he was desperate to get his money out. >"I persuaded my flight attendant to turn the internet on the plane back on," he said. "Then I sat in the airplane bathroom for 40 minutes trying to move funds."