How could someone think that this was a really good idea? It's like joining a pension fund with the average insured being over 50. Distribute risk whenever possible.
Generally agree. I run a startup and we have a few bank accounts. Luckily we were able to pull what we had in SVB (around 35% of cash reserves) on Thursday.
I think a lot of startups are in this situation. They have SVB accounts, but likely don’t have all of their money in there.
One thing to remember, SVB is very founder friendly. Often giving companies favorable lines of credit, giving founders favorable mortgages, etc. They helped us tremendously with our PPP loan, and are also deeply integrated with products like Stripe Atlas.
