Bryan Neuberg

Four main thoughts as we wrap another of the craziest days in memory (03.10.23): 1) If, by Monday, there is no announcement that all SVB deposits are safe and will be recoverable, next week will be catastrophic for the global economy. All bank accounts above the FDIC-insured $250K limit will be considered unsafe. There will be a run on all banks save for perhaps the top few U.S. banks. 2) Because of the above, I fully expect there to be an announcement from a combination of the federal government, federal reserve, and major banks, that all SVB depositors will be made whole. The effects of this not happening are too crippling. 3) Every affected company should be thinking creatively about the worst-case-scenario that those funds with SVB, beyond the $250K FDIC-insured (and hopefully more uninsured) deposits that become available on Monday, are not recoverable for a while. Many companies are already exploring creative options with debt facilities and equity financings. Many of us VCs are doing work in the background (along with law firms) to figure out the best way we can help to make sure that our portfolio companies can make payroll and other key obligations in the short term. The only real longer-term solution, though, is the funds being recovered. 4) There will be many operational hurdles in the coming weeks for many people and businesses. Everyone -- seriously, everyone -- will need to have a little extra empathy, kindness, and grace to get through this time period. Payments will be delayed. Work will get bottlenecked. Certain people will be more affected than others. But we'll get through it. Take care and stay calm.