Founders and VCs reveal why they're sticking with the failed Silicon Valley Bank, at least for now: 'We owe them to keep them healthy'
describing the bank as"open for business," stating that all existing and future deposits would be protected by the FDIC and the company was"conducting business as usual." the next day imploring the public to help the bank rebuild its deposit base, both by leaving existing deposits and transferring back deposits that had left in the prior days. He added that this was the"number one thing you can do to support the future of this institution.
Cameron Steele, co-founder and CEO of commercial real estate startup Phrophia, banked exclusively with SVB prior to its failure and plans to keep all of his money at the bank. SVB's reputation for being founder-friendly can also be a huge draw for depositors. Hellman said he used the bank for personal mortgages when buying his last two homes. Traditional banks often balk at mortgages for founders working at relatively-higher risk startups.
And even Brex, a fintech that many founders rushed to transfer their cash to during the SVB crisis, announced on Wednesday that it would movefeeling pressure to diversify Although their own business' health comes first, for many, the survival of Silicon Valley Bank is crucial, as a long-standing emblem of the tech community and a figure that welcomed risky startups when traditional institutions turned them down.
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