How Founders Are Reacting To Silicon Valley Bank’s Collapse

On Wednesday evening, Stefan Seltz-Axmacher, co-founder and CEO of Polymath Robotics, noticed chatter in a YC founder WhatsApp group about Silicon Valley Bank’s plan to launch a $2.25 billion share sale and an agreement by General Atlantic to buy $500 million of the bank’s common stock. In response, Seltz-Axmacher, unprompted by VCs or advisers, transferred about 50% of his startup’s funds out of SVB and into another existing account at Mercury Bank. This unexpected event sparked a conversation among hundreds of other founders about the potential risks of keeping funds in Silicon Valley Bank.