Aaron Parecki

Our SVB line of credit was working yday, but was turned off today. That was where we paid our bills (software to manage our backend codebase, lease, slack, etc)

This wked I have to move all of this to my personal credit cards. A *lot* is falling on founders personally.

A bailout for shareholders here is unjustified, but having the government backstop deposits until a safe home for SVB assets is found just makes sense. Otherwise businesses are going to pull their money out of every regional bank ASAP.

there is a ~3 week window for angel rescue packages for great companies (say top 200) caught directly in the SVB crash for which if they don’t come up with options they will miss payroll
insane opportunity to own warrants for great companies for dynamic investors with a war-chest

Database is closed, try again in the morning.

Maybe that's why Apple hasn't shipped a car or a printer yet. Maybe it's impossible

3) FDIC doesn't usually end up putting in a lot of $ at all; whatever the gap is between deposits and liabilities tends to get made up by stockholders and lenders. And anything they do put in is made up for by charging banks higher insurance premiums. FDIC is not taxpayer funded

Oh my. Some Silicon Valley startup was set to announce layoffs today. But it had to cancel the announcement, because the SVB collapse means it currently doesn't have the money to offer severance https://www.bloomberg.com/news/articles/2023-03-10/startups-are-worried-about-paying-their-people-after-svb-fails?sref=vuYGislZ

Running a company:

2020: can you survive a pandemic?

2021: still here? we’re going to give all of your competitors $100m series A rounds.

2022: wow, you made it? okay, all engineers cost $600,000/year now.

2023: nice job! okay, we’re going to take away your bank account.

Theory: The SVB bank run is (partly) happening because their depository base is all of a few thousand startup CEOs who spend too much time on Twitter and meme'ed all this into existence.

(In addition to bad risk management around their bond portfolio.)

People have no idea how bad things are right now and the ripple effects.

The Silicon Valley Bank situation is catastrophic.

I don't think many people understand the level of chaos happening in tech right now.

This is just fucking insane