Daily Crunch: Silicon Valley Bank goes bust – regulators take control of over $175 billion in deposits

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Hello Crunchers,

Today there is only one story on everyone’s lips: The sudden and dramatic collapse of the Silicon Valley Bank (SVB), the 40-year-old Silicon Valley institution. With $209 billion in assets under management at the time of the collapse, it is the second largest banking collapse in US history.

A large number of startups suddenly found themselves in a difficult position when the bank went through a swift velocity collapse. In this special edition of the Daily Crunch, we recap what the sudden crisis of value means across the industry.

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TechCrunch’s top story

  • Regulators step in: Natasha M reports that the bank and its 17 branches have been closed by the California Department of Financial Protection and Innovation. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
  • So, uh, what happened?: (TC+): Alex Trusts to provide the context and concludes that it seems like the rumor that SVB is in trouble caused a run on the bench which has led to it actually Trouble soon after.
  • What the founders think: Several of my colleagues took to the (virtual) streets to find out how founders were reacting to the collapse of the bank.

The Sinking of the Silicon Valley Bank

Before the bank was shut down by regulators, many things happened very quickly:

  • For you at a special price: Manic And Ingrid learned that Silicon Valley Bank was in sales talks.
  • Get out while you can: Natasha M And Alex reported that VC firms began advising their portfolio companies to withdraw funds from SVB (TC+).
  • A bump in the road: Natasha M wrote that some SVB customers were having trouble transferring funds out of the bank.
  • In free fall: Natasha M And Alex followed with her report that SVB shares plummeted as the whole mess unfolded.
  • fill the void: Never wasting a good crisis, startups step in to fill the vacuum SVB leaves for the ecosystem, Natasha M And Maria Ann reported.
  • Maybe aim better: One would imagine that someone at Silicon Valley Bank would have stopped and thought, “Hmm, maybe today isn’t the right time to state that we are bolstering our balance sheet.” Conni writes, concluding that SVB shot itself in the foot quite spectacularly after announcing the closure of crypto bank Silvergate. Jaquelyn analyzed the Silvergate downward spiral for TC+.
  • So, uh, what now?: With SVB funds on hold (until Monday at least, regulators say) how do you cover payroll etc? Alex takes a closer look at what startups are dealing with (TC+).

Building a lean growth stack for B2B startups

Hand of a scientist with a syringe injecting liquid into a plant in an experiment.

Photo credit: Jose Bernat Bacete (opens in a new window) /Getty Images (image has been modified)

Choosing the right tool for the job is easy when you already know exactly how to do it.

However, most B2B growth marketers don’t have a blueprint to work from, which is why Keith Putnam-Delaney, CEO of Primer, shared a guest post with TC+ identifying the tools for early, mid, and early stage startups late phase are most suitable.

“The current budget-constrained environment should be viewed as an overall positive by marketers,” he writes. β€œIt forces teams to think deeply about what is absolutely necessary, what tools increase (or decrease) efficiency.”

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And some other news

OK, good, there was other things happen, except that today the SVB also goes straight to hell without passing “go”. Here’s a few things worth reading about the rest of the site…

Lots of news in cybersecurity today, like Karly reports that the SEC accuses Blackbaud of failing to disclose the “full impact” of a ransomware attack; Zack writes that telemedicine startup Cerebral has shared millions of patient records with advertisers; and Zack also reports that the PeopleGrove vulnerability exposed users’ personal information. In the meantime, Lorenzo dived in to examine how the FBI proved a remote administration tool was in fact malware.

And here are some non-SVB, non-cybercrime headlines for you too. Aren’t we generous today:

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