Silicon Valley Bank Collapses: What You Need to Know

On Friday, Silicon Valley Bank, the 40-year-old go-to lender for tech startups, collapsed amid a bank run and capital crisis. The California Department of Financial Protection and Innovation appointed the Federal Deposit Insurance Corporation (FDIC) as receiver and the FDIC will cover up to $250,000 per depositor.[0] The bank was the 16th largest in the U.S. and had $209 billion in total assets at the end of 2022.[1]

The sudden collapse of Silicon Valley Bank has pushed tech investors and startups to scramble to figure out their financial exposure to the bank while founders worry about getting their money out, making payroll and covering operating expenses. Reports indicate many of SVB's clients, typically steeped in the tech startup world, may have had more than the FDIC-insured amount of $250,000 deposited with the bank, which could be lost when the dust settles.[2]

The FDIC said those with insured deposits with SVB would be able to access their money by no later than Monday.[3] However, many startups kept far more than that with the bank, leading to fears of a contagion effect from financial distress at Silicon Valley Bank and Silvergate Capital.[4]

The FDIC is encouraging customers to remain calm and reassured that their deposits are safe. It is also offering advance dividends to uninsured depositors within the next week.[5] The SVB meltdown is the second-largest failure of a financial institution in US history, and the first since the 2008 financial crisis.[6]

0. “Investors implore the government to step in after Silicon Valley Bank failure” CNBC, 11 Mar. 2023,

1. “Billionaire Bill Ackman on SVB collapse: Government has 48 hours to fix ‘irreversible mistake'” Fox Business, 12 Mar. 2023,

2. “FDIC's Takeover of SVB Sparks Bank Runs, BoA & Wells Fargo Fears” TMZ, 11 Mar. 2023,

3. “What to know about the spectacular collapse of Silicon Valley Bank” NPR, 10 Mar. 2023,

4. “Wall Street banks including JPMorgan, Bank of America see $55B value wipeout” Markets Insider, 10 Mar. 2023,

5. “Takeaways from America's second-largest bank failure” CNN, 11 Mar. 2023,

6. “Silicon Valley Bank Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC” The Intercept, 12 Mar. 2023,

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