The Silicon Valley Bank collapse has triggered chaos across United States and rest of the world. Everyone right from big startups to the smaller ones have been severely affected by the biggest bank failure in a decade. But the SVB crisis is nothing less than a misery for smaller startups.
Lindsey Michaelides, who is a founder and chief executive officer of organisational software seller Strongsuits, says the collapse might look like a 1 per cent problem which only affects the elite, but it is not true.
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The entrepreneur said the collapse hits small businesses made up of hard-working people who make small mortgage payments in the midwest. She added that bank downfall affects ‘parents putting dinner on the table’.
“I learned of SVB’s precarious situation on Thursday. As a precaution, I logged into my SVB account and wired all our funds to a small account I maintained at a different bank. I left only $250K to cover outstanding expenses, including payroll set to pay the team on Friday”, she said in a lengthy Twitter thread.
Describing the events which transpired on the day the SVB was shut down by the Federal Deposit Insurance Corporation, Michaelides tweeted,"Friday morning I learned the wires had not processed. Then, SVB collapsed and was taken over by the FDIC. I spent the day ensuring my team would be paid and talking with other founders in the same boat. The only certainty: all our $ was locked up; very little is insured".
ALSO READ: Silicon Valley Bank collapse: Biden administration's relief to depositors, says…
Describing the events which transpired on the day the SVB was shut down by the Federal Deposit Insurance Corporation, Michaelides tweeted,"Friday morning I learned the wires had not processed. Then, SVB collapsed and was taken over by the FDIC. I spent the day ensuring my team would be paid and talking with other founders in the same boat. The only certainty: all our $ was locked up; very little is insured".
ALSO READ: Silicon Valley Bank collapse: Biden administration's relief to depositors, says…
“I don’t know how this ends. I know that the financial future of Strongsuit; my team and my family are at risk w/ the collapse of SVB. I know that my story and the stories of thousands like me that have been impacted by SVB’s collapse do not match the current narrative”, she added.
“I am not the tech-elite. I am a mom in Ohio who gets up everyday and works as hard as I can to raise good humans and to build something that will make the world better for all our kids. My founder story is 100% vision, grit, hardwork & sacrifice. No riches", she added further.