After the collapse of SVB startups are scrambling to figure
out who they want to bank. Next. Silicon
Valley Bank. Truly startups bank. It counts almost
half of the U S venture capital backed startups as
clients, about 40% of their deposit funds came from
early stage tech and biotech companies. So the question
becomes, why didn't start ups no earlier, when
they go to venture capital funds they seek now,
Not only funding but also advice, especially on daily
operations such as banking, hiring and layoffs. What
happened was that venture capital funds basically dropped the border
back in 2021. There was so much money flooding
into their world that they simply became passthroughs. They
shoveled money from and investors to startups and they didn't
bother with very simple risk control. They failed their
portfolio companies in this sense.