Silicon Valley industries such as Airbnb, DoorDash and Dropbox are scrambling to make payroll after their bank assets were siezed by U.S regulators on Friday. Many tech companies and workers hurried to withdraw money from Silicon Valley Bank this week after industry-wide concerns of the bank’s health spread. This prompted the second biggest bank failure in U.S. history.
According to the Associate Press $175 billion in customer deposits are now under the control of the Federal Deposit Insurance Corporation.This is an extinction-level event for startups,” Y Combinator CEO Garry Tan said. “I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, ‘Do I have to furlough my workers?’”