Daily Crunch: Silicon Valley Bank goes bust — regulators take control of $175B+ in deposits

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Hello Crunchers.

Everyone has one story to tell today. It is the sudden and dramatic collapse of the Silicon Valley Bank (SVB), a 40-year-old Silicon Valley institution. With $209 billion in assets under management at the time of failure, it is the second largest bank failure in U.S. history.

When banks experienced the Swift-Velocity Breakdown, a huge number of startups were suddenly in trouble. In this special edition of The Daily Crunch, we round up what the sudden value bust means across the industry.

— he came

TechCrunch Top Stories

• Regulators intervening: Natasha M. reports that the bank and its 17 branches have been closed by the California Department of Financial Protection and Innovation. The agency has designated the Federal Deposit Insurance Corporation (FDIC) as the beneficiary.
• So, um, what happened?: (TC+): Alex It can be relied upon to provide context, and concludes that rumors that SVB is in trouble appear to have caused bank runs. actual trouble immediately.
• Thoughts of the founder: Some of my colleagues took to the (virtual) streets to get an inside look at how the founders are reacting to the collapse of the bank.

The end of Silicon Valley Bank

A lot happened very quickly before the bank was shut down by regulators.

• special price for you: mannish and Ingrid Rumors circulated that Silicon Valley Bank was in talks to sell.
• get out while you can: Natasha M. and Alex VC firms have started advising portfolio companies to move funds out of SVB (TC+).
• road bump: Natasha M. Some SVB customers have written that they are having trouble transferring funds from their banks.
• in free fall: Natasha M. and Alex As the whole mess unfolded, I followed up on their report that SVB’s stock was crashing.
• fill the gap: Never waste a good crisis. Startups are diving into breaches to fill the void left by SVB in the ecosystem. Natasha M. and Mary Ann report.
• maybe shoot more: You might imagine someone at Silicon Valley Bank would stop to think, “Well, today might not be the right time to declare that we’re strengthening our balance sheet.” Connie The SVB writes and concludes that it has stepped in rather spectacularly following the announcement of the closure of cryptocurrency bank Silvergate. Jacqueline We analyzed the Silvergate downward spiral of TC+.
• So, uh, what now?: With SVB’s funds locked (at least until Monday, according to regulators), how are you going to meet salaries, etc.? Alex Let’s take a closer look at the problems facing startups (TC+).

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and other news

ok ok over there it was Besides SVB going straight to hell without going through “go”, something else is happening today. Here are some of the ones worth reading for the rest of the site…

A lot of news about cybersecurity today curly The SEC has reportedly charged Blackbaud with failing to disclose the “full impact” of the ransomware attack. Zach Telehealth startup Cerebral writes that it has shared millions of patient data with advertisers. Zack also reports that a PeopleGrove security breach exposed users’ personal information. in the meantime, Lorenzo We dived in to find out how the FBI proved the remote administration tool was indeed malware.

There are also some non-SVB, non-cybercrime headlines. Aren’t you generous today?