“The biggest message is for our politicians to realize this could be a contagion if it trickles to regional banks. It’s small tech. It’s not big tech that are our clients.” Via WIREDUK
how quickly the cadre of small-government, libertarian tech bros has come calling for government intervention in the form of a bailout when it’s their money on the line.that SVB depositors will regain access to all their money, thanks to the Federal Deposit Insurance Company's backstop funded by member banks. Yet the shock to the tech ecosystem and its elite may still bring down a reckoning for many who believe it’s got nothing to do with them.
The bank's customers may now be getting their money back but the services SVB once provided are gone. That void and the shock of last week may cause—or force—startups and their investors to drastically change how they manage their money and businesses, with effects far beyond Silicon Valley. employers, around a third of whom are based outside California. If they and other SVB customers suffer cash crunches or cut back expansion plans, rent payments in many parts of the world may be delayed and staff may no longer buy coffees and lunches at the corner deli. Cautious about the future, businesses may withhold new hires, and staff who remain may respond in kind, cutting local spending or delaying home purchases or renovation work.
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