Silicon Valley Bank claimed to have worked with about half of the nation’s venture-backed startup companies. It was more like a few dozen in Wisconsin, thanks to the same geography that often puts the state at a disadvantage when it comes to attracting outside venture capital.
That small Wisconsin number was comprised mostly of bank deposit customers who could access all their SVB cash once the Federal Deposit Insurance Corp. swooped in. The FDIC’s quick action guaranteed all deposits over $250,000 at the California-based SVB and New York’s Signature Bank, also swamped by a liquidity run. Payrolls in dire jeopardy on Friday appeared secure a long weekend later.
An extinction event was avoided … and some valuable lessons emerged for almost everyone involved.