As we keep hearing sobbing stories about tech employees losing their high-earning jobs for several months, it is now the turn of startup founders who are in a fix after the collapse of Silicon Valley Bank (SVB).
Lindsey Michaelides, Founder and CEO at human-led, tech-enabled service provider Strongsuit, posted her ordeal on Twitter, saying the collapse of SVB might look like a 1 per cent problem that only affects the "coastal tech elites" but this "impacts small businesses made up of hard-working people making modest mortgage payments" and impacts "parents putting dinner on the table".
"I learned of SVB's precarious situation on Thursday. As a precaution, I logged into my SVB account and wired all our funds to a small account I maintained at a different bank. I left only $250K to cover outstanding expenses, including payroll set to pay the team on Friday,a she posted late on Saturday.
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Friday morning last week, she realised the wire transfer had not been processed.
"Then, SVB collapsed and was taken over by the Federal Deposit Insurance Corporation (FDIC). I spent the day ensuring my team would be paid and talking with other founders in the same boat. The only certainty: all our $ was locked up; very little is insured," she said.
"I am a mom in Ohio who gets up everyday and works as hard as I can to raise good humans and to build something that will make the world better for all our kids.
"My request is this: please refuse to accept the convenient narrative that bailing out SVB or allowing it to be purchased by a larger bank is a handout to the tech-elite. This narrative is gaining traction. It's convenient and easy to believe. Demand more facts," she elaborated.
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Michaelides said that the financial future of her company, team and family are at risk with the collapse of SVB.
Thousands of startups -- from the US to India -- are waiting anxiously for what will happen next week when the US regulators chart out the future course of action on SVB.
