I don't think enough people understand the impact of the Silicon Valley Bank collapse.
What happens over the next 36 hours is going to have consequences for decades.
I want to address Millennials & Gen Z, since this is our future. MUST READ π§΅
What happens over the next 36 hours is going to have consequences for decades.
I want to address Millennials & Gen Z, since this is our future. MUST READ π§΅
To begin, a TL;DR on what is happening:
-Silicon Valley bank is the #16 largest U.S. bank with $212B in assets.
-It's primary focus has been servicing startups for decades.
-In a period of 48 hours it has collapsed, putting the entire startup/tech industry at risk.
-Silicon Valley bank is the #16 largest U.S. bank with $212B in assets.
-It's primary focus has been servicing startups for decades.
-In a period of 48 hours it has collapsed, putting the entire startup/tech industry at risk.
The goal of this thread is not to dive into the details of how or why this happened.
It's to explain to people (especially young people) why they should care.
(To get more details I recommend listening to the latest @theallinpod to hear from experts)
youtube.com
It's to explain to people (especially young people) why they should care.
(To get more details I recommend listening to the latest @theallinpod to hear from experts)
youtube.com
Let's begin with those directly impacted and then work outwards:
1) Startup employees:
If you work at a startup, there's a good chance you aren't getting paid next week.
You also might get fired, since unpaid wages allow employees to sue π
1) Startup employees:
If you work at a startup, there's a good chance you aren't getting paid next week.
You also might get fired, since unpaid wages allow employees to sue π
Even if you somehow manage to survive the initial layoffs, the future expected value of your equity just took a hit.
This collapse is going to kneecap the VC industry.
Which will make it more difficult for your startup to raise money and reach an exit event.
This collapse is going to kneecap the VC industry.
Which will make it more difficult for your startup to raise money and reach an exit event.
2) Startup founders:
If you were planning to raise (or are in the process) your chances of closing your round just dropped dramatically.
You're also now forced to expend valuable time/energy away from core operations to fix this P0 issue.
If you were planning to raise (or are in the process) your chances of closing your round just dropped dramatically.
You're also now forced to expend valuable time/energy away from core operations to fix this P0 issue.
3) Venture capital firms:
Many portfolio companies are going to be decimated, bringing their investments to $0.
Some investment firms still have funds stuck in SVB.
Any new deal flow has been completely shut down to focus on survival.
Many venture firms will die completely.
Many portfolio companies are going to be decimated, bringing their investments to $0.
Some investment firms still have funds stuck in SVB.
Any new deal flow has been completely shut down to focus on survival.
Many venture firms will die completely.
4) Vendors, customers, partners:
If you work with startups in any capacity, you are now impacted.
If you have an outstanding invoice, upcoming SAAS payment, etc. you are not getting your $ any time soon.
This means the startups' problems are now your problems...
If you work with startups in any capacity, you are now impacted.
If you have an outstanding invoice, upcoming SAAS payment, etc. you are not getting your $ any time soon.
This means the startups' problems are now your problems...
Now this is where it starts to get REALLY scary.
People want to act like this is just isolated to Silicon Valley/the Startup world...
But the impact will be felt everywhere. Here's who else is about to be impacted:
People want to act like this is just isolated to Silicon Valley/the Startup world...
But the impact will be felt everywhere. Here's who else is about to be impacted:
1) Regional banks:
The bank run on SVB will trigger a series of bank runs on regional banks across the U.S.
Customers just woke up to the dangers of the fractional reserve banking.
There is NO incentive for these customers not to switch to a big bank
The bank run on SVB will trigger a series of bank runs on regional banks across the U.S.
Customers just woke up to the dangers of the fractional reserve banking.
There is NO incentive for these customers not to switch to a big bank
These regional banks will collapse the same way SVB did.
In the process, tens of thousands of jobs will be lost, and companies reliant on those banks will have issues running their businesses...
In the process, tens of thousands of jobs will be lost, and companies reliant on those banks will have issues running their businesses...
2) Big tech employees:
If you think you are safe from this just because you work at a big tech company... think again.
A bunch of startup employees that are smarter and more motivated than you are about to flood the job market.
You think you're irreplaceable? Think again.
If you think you are safe from this just because you work at a big tech company... think again.
A bunch of startup employees that are smarter and more motivated than you are about to flood the job market.
You think you're irreplaceable? Think again.
3) All U.S. citizens:
The startup industry has been the main driver of economic growth in the United States for decades
If it goes under, we lose out on future advances in electronics, health care, transportation ,and more
(Not to mention tens of billions of $ in tax revenue)
The startup industry has been the main driver of economic growth in the United States for decades
If it goes under, we lose out on future advances in electronics, health care, transportation ,and more
(Not to mention tens of billions of $ in tax revenue)
I can't emphasize enough how devastating this event will be for younger generations of workers.
If the U.S. government doesn't step in to fix things soon, we will be facing an uphill battle for the prime years of our careers...
If the U.S. government doesn't step in to fix things soon, we will be facing an uphill battle for the prime years of our careers...
Hopefully by now I have convinced you why you should care.
Now here is what you can do to try to make an impact π
Now here is what you can do to try to make an impact π
1) Call your Senator's office:
Tell them to push the FDIC to guarantee all bank deposits by Sunday night.
Tell them to push the FDIC to guarantee all bank deposits by Sunday night.
2) Make noise on social media:
-Tag @FDICgov in your own posts and comment on their recent posts.
-If you see media members or journalists try to turn this into a political issue/misrepresent the impact, drag them like no other.
-Tag @FDICgov in your own posts and comment on their recent posts.
-If you see media members or journalists try to turn this into a political issue/misrepresent the impact, drag them like no other.
3) RT this thread:
I'm not just saying this for engagement... I genuinely think more people need to be aware.
I focused less on the technical details and more on the impact so it would resonate.
Hopefully it motivates more people to take action π€
I'm not just saying this for engagement... I genuinely think more people need to be aware.
I focused less on the technical details and more on the impact so it would resonate.
Hopefully it motivates more people to take action π€
Just left a voicemail for my Senatorβs office.
Drafting an email next.
Drafting an email next.
Good thread by @Austen clearing up a lot of the misconceptions surrounding SVB π
@garrytan and @ycombinator have also started a petition urging the government to backstop (not bailout) deposits.
You can sign here π
You can sign here π
@garrytan @ycombinator Congrats to everyone who helped amplify this thread & others.
You made your voices heard this weekend.
While there is still A LOT of systemic risk in the financial system, this was an important short term fix π€
You made your voices heard this weekend.
While there is still A LOT of systemic risk in the financial system, this was an important short term fix π€
Loading suggestions...