Putting the money in SVB rather than another bank can be seen as a poor business decision by the startups - yes, they may have be forced to by their VC backers,

Putting the money in SVB rather than another bank can be seen as a poor business decision by the startups - yes, they may have be forced to by their VC backers, or they may be just following the crowd But reality is SVB isn’t a normal bank and it had the highest percentage of deposited funds that weren’t covered by FDIC amongst US banks