Techmeme Ride Home Fri. 03/10 – Silicon Valley Bank(Run)
Mar 10, 2023
The financial turmoil at Silicon Valley Bank is sending shockwaves through the startup ecosystem, sparking concerns about a classic bank run. Meanwhile, Meta is planning a new decentralized social network that could shake up the industry. The discussion dives into the implications of AI scalability and the quest for energy-efficient innovations. Plus, there's talk of Xerox celebrating its century-long legacy and the cultural significance of big-budget historical films like 'Master and Commander'. Weekend longreads suggestions are also featured!
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Episode notes
SVB Bank Run
- Silicon Valley Bank (SVB), a key player in the startup ecosystem, experienced a classic bank run.
- This was triggered by the bank's attempt to raise cash after losses on its assets.
Outdated Banking Practices
- Brian McCullough shares his experience with Bank of Ann Arbor and SVB, highlighting their outdated banking practices.
- He notes the difficulty of simple tasks like logging in or sending wires, suggesting a lack of modernization.
Regional Bank's Downfall
- Brian McCullough suggests that SVB's regional focus might have been a contributing factor to its downfall.
- He questions whether it was wise for so many startups to rely on a single bank.
