https://www.bloomberg.com/opinion/articles/2023-03-10/startup-bank-had-a-startup-bank-run Skip to content Skip to content Bloomberg the Company & Its ProductsThe Company & its Products Bloomberg Terminal Demo RequestBloomberg Anywhere Remote Login Bloomberg Anywhere LoginBloomberg Customer SupportCustomer Support Bloomberg Bloomberg UK Switch Editions * UK * Europe * US * Asia * Middle East * Africa * Ri Ben Sign In Subscribe * Live Now Bloomberg TV+ Bloomberg Technology Bloomberg Technology The only daily news program focused exclusively on technology, innovation and the future of business hosted by Ed Ludlow from San Francisco and Caroline Hyde in New York. Bloomberg Radio Bloomberg Businessweek Bloomberg Businessweek Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Listen ----------------------------------------------------------------- Bloomberg Originals Bloomberg Businessweek- Bloomberg Businessweek Carol Massar, Jason Kelly. Bloomberg Television takes you behind the scenes of our award winning magazine "Bloomberg BusinessWeek." Carol Massar and Jason Kelly talk with the writers who break news on a weekly basis and get a lighter touch from the editor who oversees the Etc. section. Also streaming on your TV: * + Markets Markets o Deals o Odd Lots o The FIX | Fixed Income o ETFs o FX o Factor Investing o Alternative Investing o Economic Calendar o Markets Magazine Silicon Valley Bank Share Rout Deepens Amid Bank Run Fears Markets Silicon Valley Bank Provided Sought-After Loans for Buyout Firms Silicon Valley Bank Collapses In Biggest Failure Since 2008 Markets SVB's Balance-Sheet Time Bomb Was 'Sitting in Plain Sight,' Short Seller Says Market Data o Stocks o Commodities o Rates & Bonds o Currencies o Futures o Sectors View More Markets + Economics Economics o Indicators o Central Banks o Jobs o Trade o Tax & Spend o Inflation & Prices Biden Open To Options On Spending As Congress Takes Over Economics Fed Rate Outlook Overshadowed as SVB Collides With Jobs Report Homes In Canada As Rates Squeeze Buyers Economics New Canadian Homebuyers Increasingly Stretched Amid Higher Rates Fed Officials Saw Bond-Buying Pace Continuing For 'Some Time' Economics Summers Sees Nearly 50-50 Odds Fed Must Hike to 6% or Higher View More Economics + Industries Industries o Consumer o Energy o Entertainment o Finance o Health o Legal o Real Estate o Telecom o Transportation Energy Infrastructure As California's Natural-Gas Prices Soar Cybersecurity China is 'Big Threat' to US Energy Industry, Cybersecurity Official Says New Apple Products Go On Sale At Fifth Avenue Store Technology Apple Called Out by New Jersey AG Over Period-Tracking Apps Featured o Business of Sports View More Industries + Technology Technology o Code Wars o Checkout o Prognosis President Biden Departs White House For Kentucky Technology Biden Administration Set to Further Tighten Chipmaking Exports to China Semiconductor Equipment Production At ASML Holding NV Technology Japan Says No Decision Yet on Chip Export Restrictions JAL and ANA Aircraft Ahead of Earnings Report Technology Japan Airlines Scraps $48 Promo Fares After Demand Crashes Website View More Technology + Politics Politics o US o UK o Americas o Europe o Asia o Middle East Arctic Alaska North Slope Climate Change Oil Development Politics Biden Officials Back Alaska Oil Project That Critics Call a Climate Catastrophe Joe Biden,Ursula von der Leyen Politics US-EU Seek Deal on Minerals Used in EVs in Race for Green Investments Featured o Next China View More Politics + Wealth Wealth o Investing o Living o Opinion & Advice o Savings & Retirement o Taxes o Reinvention Silicon Valley Bank Share Rout Deepens Amid Bank Run Fears Wealth SVB Spectacularly Fails After Unthinkable Heresy Becomes Reality SVB Shares Halted For Pending News After Sinking Another 69% Investing What Silicon Valley Bank's Collapse Means for Your Money Featured o How to Invest View More Wealth + Pursuits Pursuits o Travel o Autos o Homes o Living o Culture o Style In A Doll's House, Jessica Chastain Is Transcendent, Even Trapped in a Chair Critic In A Doll's House, Jessica Chastain Is Transcendent, Even Trapped in a Chair What's the Best Phone Wallet? Bellroy's Clever Carrier Has What You Need The One What's the Best Phone Wallet? Bellroy's Clever Carrier Has What You Need Featured o Screentime o New York Property Prices o Where to Go in 2022 View More Pursuits + Opinion Opinion o Business o Finance o Economics o Markets o Politics & Policy o Technology & Ideas o Editorials o Letters Silicon Valley Bank Collapses In Biggest Failure Since 2008 Jessica Karl Silicon Valley Is Where Banks Go to Die Silicon Valley Bank Share Rout Deepens Amid Bank Run Fears Matt Levine Startup Bank Had a Startup Bank Run Silicon Valley Bank Headquarters As Shares Sink The Editors SVB's Demise Isn't a Regulatory Failure View More Opinion + Businessweek Businessweek o The Bloomberg 50 o Best B-Schools o Small Business Survival Guide o 50 Companies to Watch o Good Business o Subscribe to the Magazine The Promise of Higher Pay Woos MBAs, Yet Earnings Haven't Kept Up With Inflation B-Schools The Promise of Higher Pay Woos MBAs, Yet Earnings Haven't Kept Up With Inflation US Apparel Companies Can't See a Future Without China Business US Apparel Companies Can't See a Future Without China Next Big Job Cuts Will Be in Finance and Health Care, Data Show Remarks Next Big Job Cuts Will Be in Finance and Health Care, Data Show View More Businessweek + Equality Equality o Corporate Leadership o Capital o Society o Solutions Views Of The Texas State Capital During The South By Southwest (SXSW) Interactive Festival Legal Texas Man Sues Women He Says Helped Ex-Wife Obtain Abortion Pill Residential Energy Use As Families Face Surging Prices Equality UK to Reform Prepayment Energy Meters to Protect Poorer Users Featured o In Trust Podcast View More Equality + Green Green o New Energy o ESG Investing o Weather & Science o Electric Vehicles o Climate Politics o Greener Living o Cleaner Tech Chancellor of the Exchequer Jeremy Hunt Touts UK's Brexit Potential Green UK to Spend PS20 Billion on Carbon Capture in Clean Energy Push Daimler AG AGM With CEO Dieter Zetsche Hyperdrive EU Offers E-Fuel Exemption to Germany in Bid to Save Combustion Car Ban Featured o Data Dash o Hyperdrive View More Green + CityLab CityLab o Design o Culture o Transportation o Economy o Environment o Housing o Justice o Government o Technology Why the Debate Over Daylight Saving Time Rages On Culture Why the Debate Over Daylight Saving Time Rages On 650,000 White Flags Planted On National Mall To Honor American Covid Deaths Culture To Create Covid-19 Memorials, Communities Lead the Way E-Trikes Are Coming to Rescue the Aging Suburbs Transportation E-Trikes Are Coming to Rescue the Aging Suburbs View More CityLab + Crypto Crypto o Decentralized Finance o NFTs o Regulation o Technology House Rules Committee Meets To Formulate Rules On Impeaching President Trump Crypto This Week In Crypto: Court Is In Session (Podcast) Key Speakers At The CoinDesk 2022 Consensus Festival Crypto 'Transactions at The Speed of The Internet': Circle CEO Jeremy Allaire on Stablecoins Bitcoin Mining Comes to the Arctic Circle Crypto The IRS Wants to Tax Your Frozen Crypto (Podcast) View More Crypto * More ----------------------------------------------------------------- Opinion Matt Levine Startup Bank Had a Startup Bank Run One problem for Silicon Valley Bank is that its customers had too much cash, and now they don't. By Matt Levine +Follow March 10, 2023, 8:34 PM UTC Share this article Copied Gift this article Subscriber Benefit Bloomberg subscribers can gift up to 5 articles a month for anyone to read, even non-subscribers! Learn more Subscribe Sign In Follow the authors headshot of Matt Levine Matt Levine is a Bloomberg Opinion columnist covering finance. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz, and a clerk for the U.S. Court of Appeals for the 3rd Circuit. @matt_levine + Get alerts forMatt Levine Programming note: Money Stuff was supposed to be off today, but: bank run! The lesson might be that there are some industries that are bad to bank. Imagine that it was 2021, and someone was like "do you want to start the Bank of Crypto? What about the Bank of Venture-Backed Tech Startups?" You'd be tempted, right? Those industries had so much money! They seemed cool. If you were their bank -- if you were the specialized bank that exclusively focused on those industries -- influencers on Twitter would tweet nice things about you, and you'd get invited to fancy parties. Also, as their bank, you'd probably find a way to get a cut of growing industries with lots of potential. Provide banking services to tech startups, get warrants in those startups, get rich when they go public. Provide banking services to crypto exchanges, start some sort of blockchain-based payment network, get rich through the magic of saying "blockchain" a lot. LIVE ON BLOOMBERG Watch Live TVListen to Live Radio Popular in Opinion * Robert Burgess Silicon Valley Bank's Swoon Should Really Scare Us * Minxin Pei China Hawks Are Throwing Away Their Strongest Weapon * Shuli Ren Why Is the US Regulating JPMorgan But Not SVB? * Matt Levine Startup Bank Had a Startup Bank Run * Therese Raphael Georgia Is a New Front in Russia's Hybrid War Terms of Service Trademarks Privacy Policy (c)2023 Bloomberg L.P. All Rights Reserved Careers Made in NYC Advertise Ad Choices Help PxPixel