- After a bank run of $42 billion in withdrawals, Silicon Valley Bank was shut down by regulators on Friday.
- The failure of Silicon Valley’s beloved bank sent shockwaves through the tech industry.
- Startup founders have been locked out of their SVB accounts without access to their funds.
In December of 2022, a New York banker at a large financial institution started getting calls from startup founders asking to open accounts. The founders were banking at Silicon Valley Bank and wanted to switch banks immediately after being told by their venture investors that the bank was suffering from “liquidity issues.”