How Silicon Valley Bank Destroyed Itself

In this video we look at what happened to Silicon Valley Bank, and how did the most respected bank in Silicon Valley end up crashing.

We look at how the bank came crashing down in only 48 hours. How did the second-biggest crash in US banking history happen? It is also the biggest since the financial crisis in 2008.

The consequences of Silicon Valley Bank's collapse are somewhat unclear. The FDIC has taken over the bank and there might be problems in the short term for a lot of startups, this really is a big hit to the entire startup ecosystem.

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Silicon Valley Bank: What Happened and Why It Went Bankrupt [SVB Explained]:

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[paisleystocks]

Wow love the way that this was explained, entertaining, fast and to the point!

[foodfilter]

Finally a quick and easy explanation! Thank You.

[herbertbay]

Very well explained Heini. These recent development hit us as a startup directly. We're trying now to pull out the money asap to secure operations. We were lucky having pulled out most of the cash before. However, the consequences of this will be "felt" more severely as this event made the whole startup/tech environment very insecure. Let's hope for the best. Keep posting ❤

[maxxmoore]

Awesome video, thanks for breaking all that down!

[majorlook]

Great explanation, thank you. Subscribed!

[hej]

Crazy how fast things can go South. Great video!

[HyggeJourney]

You are very good at presenting! Keep going!

[barbarah]

Long term U.S. treasuries and government-backed mortgage securities my have seem like the safe choice, but perhaps they should’ve invested in some good PR instead 🤷🏼‍♀️

[validateconsult]

Soooo, basically a more a less well-run bank gets annihilated by 1 bad press release? That's insane.

Are there other take aways we can get from this? Like, were the bank especially vulnerable because of its niche customer-segment? Should they have diversified their assets more? Could they - in hindsight - have done more, or is it just bad pr?

[PeterMJensenSF]

Great video as always Heini! I DO believe they're going to find a solution that protects the majority (or all) of the deposits. The VCs have a vested interest in making sure their portfolio companies get the money the VCs invested in them back. AND that SVB survives. Because the alternative is challenging for startups. The big advantage of SVB is that they understand the startup financial model and will support businesses that most banks would not with their old fashioned procedures. Banking as a startup with one of the more traditional banks will dampen the ability to get off the ground and grow. So if no-one else steps up and buys SVB, the 300 VCs that wrote the letter today saying they'd support SVB in the future could come up with (part of) the money required. Then the VCs would end up owning [part of] the bank that supports their portfolio companies. And if they're the last resort, they'll get it at a cheap price and they may end up making money long term. Not the first time that has happened...

[maplehill]

Finally I understood what happened. Thx

[sunirmanandhar]

As a Early Stage Founder Didn't Understand WTF was happening??

After This Video: Super Clear and Well Understood, 10X Better than All the Major Media ( Silicon Valley Quality 👌)

R.I.P SVB🪦

[kiro]

Hey ! I have an app sketched out did my app prototype, logo, name. And had spoken to a very good app development company and had estimated my app for a good price. I’m ready to start the app but I feel like I have more things to learn before hoping and starting to make it. Any tips of things I should have ready and already studied before starting this step of creating the app? Thankssss

[mastorna]

No doubt that the fact that twitter exists and is widely adopted helped fuel the flames of the run.

Anyway, I love your raw startup series and could watch endless episodes. Unfortunately, I’m also a huge wine fan and would rather enjoy this nice Pinot on a Saturday.

[UllaHald]

This is the clearest explanation of the SVB debacle I have seen. Thank you, Heini!
Our company was not directly affected, but I fear the cascading effects.

[gilschoenberg]

Happy Vivino is OK - what a crazy mishandling...

[samrossi]

People became extremly cautious with banks movements since the wave of crypto banks add to it the current crisis. I feel like if the same situation happened 5 years ago they would get away with it. Really nice covering of the story thank you!

[AndeLyons]

I was hoping you'd have a SVB autopsy.

[maximusandsenecagloballlc]

I need business loan for $500K at 4% APR with 6 months before repayment begin. Can you help?

[WhyteLis]

These financial crashs with banks or investments, it makes me think, if humanity were less emotional creature with our money, how would problems such as these turn out differently?

As human often get panicky and emotional by nature. I mean, just talking about politics and sharing your worst movie experiences can get people up and arms with you. Lol.