3 lessons from Silicon Valley Bank’s failure – By Kevin Roose (New York Times) / Mar 12, 2023
What can the collapse of Silicon Valley Bank teach us about the tech industry?
On one level, not much. It’s true that SVB, as tech insiders called it, was a Silicon Valley institution, and that it counted many of the tech industry’s best-known startups and investment firms as its clients. It’s also true that the bank’s failure will have ripple effects throughout the tech sector in the short term, as companies that kept their money there struggle to get their deposits out and make payroll.
But what brought Silicon Valley Bank down wasn’t lending to risky startups, or gambling on sketchy crypto coins, or some other ill-considered tech scheme. It was an old-fashioned bank run, set off back in 2021 by a series of old-fashioned bad decisions.
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