The collapse of Silicon Valley Bank (SVB) may seem like a far-off problem that only affects the coastal tech elite, but for Lindsey, a mother of four and CEO of a start-up in Ohio, it's a nightmare that could ruin her company, her team, and her family.
The Silicon Valley Bank collapse is the biggest since the 2008 financial crisis. The bank had assets worth $209 billion during the time of failure. Leaving the statistics aside, the bank's collapse had led to a ripple effect impacting multiple companies and its employees. Lindsey is one such founder who took to Twitter to describe her ordeal after the SVB bank collapse.
Lindsey's story began in 2017 when she and her husband had their second child. As working parents, they struggled to manage everything and sought advice from friends and mentors, but found no real solutions, only stories of struggle. It was then that Lindsey decided to start her own company, Strongsuit, a platform that connects parents with mentors to help navigate the challenges of parenting and work.
Fast forward a few years and Strongsuit managed to grow into a successful start-up, employing a team of 15 and serving a community of parents across the country. Lindsey drives a used Honda Odyssey, her husband works in manufacturing, and they make modest mortgage payments on their home in Ohio, United States. But the collapse of SVB has put all of that at risk.
On Thursday, Lindsey got to know the precarious situation of SVB. As a precaution, she transferred most of the money in SVB to a smaller different bank. She ended up leaving $250K in the SVB bank for payout to her employees.
On Friday Morning, Lindsey came to know that the payout didn't happen and FDIC had taken over the bank. Now, her company's money and employee salaries were 'locked up'.
As a start-up founder, Lindsey knows how hard it is to build a company from scratch, and she worries about the impact the bank's collapse will have on her team and their families.
But it's not just her company that's at risk. Lindsey worries about the impact the bank's collapse will have on other small businesses across the country.
Lindsey's story is a stark reminder that the collapse of a bank, even one that seems far removed from our daily lives, can have real and devastating consequences. As the fallout from SVB's collapse continues to unfold, Lindsey and thousands of other customers will be left to pick up the pieces and try to keep their businesses and families afloat.