Insured up to $250k. No guarantee there won't be a delay in withdrawing your funds once the Fed takes over.

After FDIC seizes the bank your funds are available the next business day up to the insured amount. Above the insured amount you have to wait a while longer.

Not to the amount that most startups would have in their account

The startup I worked for used SVB. While I am unsure if all of their money was with SVB, it was company that had raised over 100m. I wonder if there will be issues with paychecks going out. Surely they diversified their accounts, but who knows.

Deposits ate FDIC insured up to 250k per depositor per bank. Companies with > $250k in the bank need to take the risk that they really can lose that money into account.

Per bank and per account with different ownership categories, so if a company had multiple accounts in different ownership categories those would each be insured up to $250,000

Why would a company have different ownership categories for their accounts? Wouldn't all of their accounts be wholly owned by the company and no one else?

FDIC limits are low. Socialized losses can definitely happen past those limits.

A document I saw yesterday claimed that SVB had ~$160B in uninsured deposits.