> Why are we complaining about the VCs when this isn’t their fault? I wouldn’t be so sure. VCs didn’t tell the bank how to invest their deposits, but they caus

> Why are we complaining about the VCs when this isn’t their fault? I wouldn’t be so sure. VCs didn’t tell the bank how to invest their deposits, but they caused some of the conditions for the illiquidity and they instigated the bank run. Why were so many startups concentrated at SVB? VCs recc’d it to their investment companies. Why did SVB’s liquidity dry up last year? VC funding dried up last year when interest rates rose. How did the run on the bank accelerate so fast? VCs directed their investment companies to divest at the same time. Why was SVB the first bank to be affected by the interest rate rises? Only about 7% of SVB’s deposit dollars were FDIC insured, compared to 40%+ of other banks of comparable size. And previous answers.