At least some of these startups found themselves scrambling to transfer over to other banks, such as J.P. Morgan Chase. However, the mad rush of people who moved to withdraw money from Silicon Valley Bank makes everything more difficult.
One startup business, Shelf Engine, is especially feeling the pain. To add insult to injury, Silicon Valley Bank regularly provided loans, credit cards, and other services to startups that competing banks didn’t want to take a chance on.
It remains to be seen if other financial institutions step in to fill the gap as customers of Silicon Valley Bank face the current fallout.
