Silicon Valley Bank's demise disrupts the disruptors in tech

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Silicon Valley Bank's demise disrupts the disruptors in tech
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Silicon Valley Bank’s collapse rattled the technology industry that had been the bank’s backbone

“Any bank is happy to take a startup’s money,” Lee said.

“They understood startups, they understood venture capital,” said Leah Ellis, CEO and co-founder of Sublime Systems, a company in Somerville, Massachusetts commercializing a process to make low-carbon cement. “They were woven into the fabric of the startup community that I’m part of, so banking with SVB was a no brainer.”Article content

Bob Ackerman, founder and managing director of venture funder AllegisCyber Capital, likened last week’s flood of withdrawal demands from Silicon Valley Bank’s to a self-inflicted wound by “a circular firing squad” intent on “shooting your best friend.”Article content Even though all of Silicon Valley Bank’s depositors are being made whole, its demise is expected to leave a void in the technology sector that may be difficult to fill. In an essay that he posted on his LinkedIn page, prominent venture capitalist Michael Moritz compared Silicon Valley Bank to a “cherished local market where people behind the counters know the names of their customers, have a ready smile but still charge the going price when they sell a cut of meat.

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