Startup Bank Had a Startup Bank Run(bloomberg.com)
bloomberg.com
Startup Bank Had a Startup Bank Run
https://www.bloomberg.com/opinion/articles/2023-03-10/startup-bank-had-a-startup-bank-run
3 comments
As always, Matt's great for a starter explanation (maybe not ELI5, but explained like I'm an adult with no specific banking knowledge)
"But if all of your depositors are startups with the same handful of venture capitalists on their boards, and all those venture capitalists are competing with each other to Add Value and Be Influencers and Do The Current Thing by calling all their portfolio companies to say “hey, did you hear, everyone’s taking money out of Silicon Valley Bank, you should too,” then all of your depositors will take their money out at the same time."