Submitted by Grevious47 t3_11oya5t in personalfinance
Got an email today from our CEO stating that all of our funds were in Silicon Valley Bank and after the failure responsibility has been transferred to the FDIC and we are locked out. CEO states they are "optimistic" about us eventually recovering all of our assets (although I doubt they were insured) but they admit they have no timeline there. They say they are going to our investors seeking additional bridge funds but our investors are groups that invest in startups and we probably aren't the only ones pounding on their door right now.
I am unsure what to expect here. Normally I would be paid on the 15th but I am thinking due to this I will not be. I can weather that missed pay but not having any idea about how long this will go on for has me concerned. I like the startup I'm in and don't want to abandon ship but the finances of a Series B startup are precarious and so far we have no revenue (though we are getting close it will still take time). So if we are truly locked out of our funding for an indeterminant amount of time I imagine that could sink the whole company. Our companies burn rate is probably 1 to 2 million a month so things could go wrong fast. I wonder if sitting back doing nothing and assuming it will all work out would be a mistake.
Not used to this obviously. Anyone with insight into the banking world have any clue as to what to expect here? I understand no one knows for sure but some general predictions of likely future events sure would be nice.
EDIT UPDATE: This morning our CEO confirmed 100% of our funds with SVB were as a depositor (ie not as a creditor) and therefore with the FDIC action we should be getting 100% of it back today. That said because this is via a quickly put up website that everyone is now flooding it hasn't happened yet. So still possible that the actual process will take more time than just 12 hours we should get our funds back quickly. Our next payday is the 15th so whether or not this will cause a delay there is yet to be seen depends on how quickly we get our funds. I can update on the 15th how it panned out.
UPDATE 2: I received my full pay on time