Four days of panic: How startup execs navigated SVBs meltdown and prepared for the worst
Summary
After turning on CNBC last Thursday to see SVBs stock price getting hammered and news of venture firms urging startups to hit the exits, EarthOptics CEO Lars Dyrud acted quickly. BlackRocks Rieder says more volatility could play through the financial system Demand for Fed help shows the banking industry is still under pressure Like thousands of SVB customers, Dyrud was most immediately worried about missing payroll for March 15, which was just a few days away. He spent all day Friday and the weekend devising an emergency plan that centered around a $1 million loan from three board members, including from one investor who would be wiring funds to BambooHR, the companys paycheck processor. Four days of panic finally came to an end late Sunday, when regulators announced a plan to backstop deposits and ensure that all clients would be able to retrieve their money starting Monday. Dyrud said hed never done business with SVB prior to running EarthOptics, but hes spoken with people at the event who have much longer and deeper ties to the bank through venture debt arrangements and other types of financing.
