On Friday, March 10, 2023, Second largest banking collapse in United States history occurred. Silicon Valley Bank (SVB), a stalwart of the startup community, was shut down by California regulators, with the Federal Deposit Insurance Corporation (FDIC) stepping in as the bank’s receiver. While it appears that the FDIC $250,000 limit on insured accounts has been addressed with the federal government’s promise to make all depositors “whole”, many founders are still rightly concerned.
While we wait for the dust to settle and see the impact on the broader economy develop, we are confident in the startup community. For founders and business owners, it’s another bump in the road, another leap of faith, another unprecedented time. And yet, here we are. The path you’re on, chasing your dreams, outperforming the markets, and making the world a better place, is a risky one.
While the broker had no funds in SVB, we took immediate steps to support our community of startup and small business customers affected by SVB’s collapse. We reached out to affirm our stability in this moment of uncertainty, quickly obtained legal advice for our clients when needed, and explained our claims process. Then, as issues of financial fraud and cyber security emerged, we again offered tools, advice and steps to reduce the risk of social engineering and ransomware cases.
Given the anxiety and fragility of this moment, it was important for us to let our customers know that we are strong, ready and ready to support them in this time of uncertainty. After all, isn’t that what you expect from a trusted partner to help you identify risks to your company?
We are working closely with our banking partners, cyber security team as well as our customers to ensure we can provide them with support, resources and most importantly advice on the best coverage to navigate these uncertain times.
In times like these, it is easy to succumb to the unpredictability, the unknown. But startups have always shown tremendous resilience, and especially now, that has never been more true. The possibility of what your ideas can do is always a risk worth taking. At Embroker, we are making risk taking that much easier. Not just for yourself but for everyone.
Thank you to our partners and teams for continuing to support our customers.