HACKER Q&A
📣 O__________O

How significant would the collapse of SVB be on SV startups?


For context, here’s one investors opinion:

>> “Government intervention should be considered,” warned billionaire investor Bill Ackman on Thursday. “SVB could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital can’t provide a solution, a highly dilutive Government-preferred bailout should be considered.”

Source:

https://www.asiamarkets.com/million-dollar-svb-stock-trade/

  👤 PaulHoule Accepted Answer ✓
If you have $250,000 in the bank then you are covered by the FDIC and will be made whole.

These VCs must have more than that and they can lose it. The usual scenario for a failing bank is that the feds will try to merge it with a healthy bank. Could be a bloodbath though, they could get a bailout, could be the end of ‘big money’ backing crypto and crypto adjacent stuff.