FORUM: How do you go from one of America’s best banks to one of social media’s best jokes in less than a week? The digital jibes flew fast and furious as Silicon Valley Bank melted down.
How do you go from one of America’s best banks to one of social media’s best jokes in less than a week? The digital jibes flew fast and furious as Silicon Valley Bank melted down.
“Insolvency is an experience I suppose,” tooted Bruce Halperin, as he posted a picture of the as-yet-unopened event space Silicon Valley Bank was building at 532 Market St. Before dancing on SVB’s grave, we might consider how, exactly, we were planning to fill empty storefronts like 532 Market. The rotunda has long confounded me: How could such a prime property be so underused?
In came SVB, which subleased the space from Morgan Stanley last summer and spent hundreds of thousands of dollars to spruce it up, according to permits filed with The City. If the planned Cleantech Group talk was any indication, it was on the brink of opening up for just the kind of activity Mayor London Breed has been pleading for: events to “activate” downtown, bringing together investors, lawyers, bankers and entrepreneurs.
Rates went up, the value of SVB’s portfolio went down, and so did its clients’ cash balances as those founders discovered what “burn rate” meant. A botched plan to shore up its finances, along with a downgrade from Moody’s, freaked venture capitalists out. A few group texts later, a $42 billion bank run was underway, and that was that.
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