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

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Hi, Crunchers,

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

A huge number of startups suddenly found themselves in a pickle as the bank went through a Swift-Velocity Breakdown. In this special edition of the Daily Crunch, we summarize what the Sudden Value Bust means across the industry.

Haje

The TechCrunch Top Story

  • Regulators stepping in: Natasha M reports that the bank and its 17 branches were closed by the California Department of Financial Protection and Innovation. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
  • So, er, what happened?: (TC+): Alex can be trusted to provide the context, and concludes that it seems like the rumor of SVB being in trouble caused a run on the bank, which put it in actual trouble soon after.
  • What the founders think: Several of my colleagues took to the (virtual) streets and got the lowdown on how founders are reacting to the bank’s collapse.

The demise of Silicon Valley Bank

Before the bank got shut down by regulators, a lot of things happened very quickly:

Building a lean B2B startup growth stack

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

Image Credits: Jose Bernat Bacete (opens in a new window) / Getty Images (Image has been modified)

Selecting the right tool for the job is easy when you already know exactly how to proceed.

Most B2B growth marketers don’t have a blueprint to work from, however, which is why Primer CEO Keith Putnam-Delaney shared a guest post with TC+ that identifies which tools are most appropriate for early-stage, midstage and late-stage startups.

“The current budget-constrained environment should be seen as a net positive by marketers,” he writes. “It will force teams to think deeply about what’s absolutely necessary, which tools will add efficiency (or subtract from it).”

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And some other news too

Okay, fine, there were other things happening besides SVB going straight to hell without passing “go” today as well. Here’s a smattering of things worth reading across the rest of the site…

A lot of news in cybersecurity today, as Carly reports that the SEC charges Blackbaud for failing to disclose the ‘full impact’ of a ransomware attackZack writes that Telehealth startup Cerebral shared millions of patients’ data with advertisers; and Zack also reports that PeopleGrove security lapse exposed users’ personal information. Meanwhile, Lorenzo dove in to explore how the FBI proved a remote admin tool was actually malware.

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



News Article Courtesy Of Haje Jan Kamps »