[Goose]

Yeah, the way I heard it SVB had a commitment to raise the money it needed to take the appropriate write-down and stay in business. Super VC Peter Thiel (a Stanford grad) told all his companies to withdraw their funds and that started the bank run that caused the collapse. I always thought that SVB had a close enough relationship with the VC's that they would be willing to work with them through this crisis. I guess they did, except for Thiel.

My understanding is that all those VC with companies over the insurance limit in their portfolios were staring at each other and wondering if/when the dam would break. Nobody wanted to be left holding the bag. Thiel was first, but the situation was far from stable. If a VC lost lots of OPM by recommending his companies stand pat,  his situation would be worse than that of SVB :-). IMO it was only a matter of (not much) time before somebody else acted similarly.

[Goose]

Yeah, the way I heard it SVB had a commitment to raise the money it needed to take the appropriate write-down and stay in business. Super VC Peter Thiel (a Stanford grad) told all his companies to withdraw their funds and that started the bank run that caused the collapse. I always thought that SVB had a close enough relationship with the VC's that they would be willing to work with them through this crisis. I guess they did, except for Thiel.

My understanding is that all those VC with companies over the insurance limit in their portfolios were staring at each other and wondering if/when the dam would break. Nobody wanted to be left holding the bag. Thiel was first, but the situation was far from stable. If a VC lost lots of OPM by recommending his companies stand pat,  his situation would be worse than that of SVB :-). IMO it was only a matter of (not much) time before somebody else acted similarly.