San Francisco, March 12 (IANS) As we keep hearing sobbing stories about tech employees losing their high-earning jobs for several months, it is now the turn of startup founders who are in a fix after the collapse of Silicon Valley Bank (SVB).
Lindsey Michaelides, Founder and CEO at human-led, tech-enabled service provider Strongsuit, posted her ordeal on Twitter, saying the collapse of SVB might look like a 1 per cent problem that only affects the “coastal tech elites” but this “impacts small businesses made up of hard-working people making modest mortgage payments” and impacts “parents putting dinner on the table”.
“I learned of SVB’s precarious situation on Thursday. As a precaution, I logged into my SVB account and wired all our funds to a small account I maintained at a different bank. I left only $250K to cover outstanding expenses, including payroll set to pay the team on Friday,a she posted late on Saturday.
Friday morning last week, she realised the wire transfer had not been processed.
“Then, SVB collapsed and was taken over by the Federal Deposit Insurance Corporation (FDIC). I spent the day ensuring my team would be paid and talking with other founders in the same boat. The only certainty: all our $ was locked up; very little is insured,” she said.
“I am a mom in Ohio who gets up everyday and works as hard as I can to raise good humans and to build something that will make the world better for all our kids.
“My request is this: please refuse to accept the convenient narrative that bailing out SVB or allowing it to be purchased by a larger bank is a handout to the tech-elite. This narrative is gaining traction. It’s convenient and easy to believe. Demand more facts,” she elaborated.
Michaelides said that the financial future of her company, team and family are at risk with the collapse of SVB.
Thousands of startups — from the US to India — are waiting anxiously for what will happen next week when the US regulators chart out the future course of action on SVB.
–IANS
na/svn/
