[semimojo]

I thought the FDIC exists to help depositors and banks. VC investments are gambling, in a sense, so risk is involved. Let them fail or succeed, just like regular folks in a capitalist society.

Trust me, the VCs don’t have their money deposited in SVB, the small businesses they backed do.

It’s these businesses that are being damaged, not the VCs. At least not directly.

[roadcat]

It’s these businesses that are being damaged, not the VCs. At least not directly.

That's what I meant. The small businesses received the investments which are deposited in the bank, and now these businesses are at risk, leading to the VC lenders losing out indirectly. Just said it in fewer words "VC investments are gambling".

[CurlyDave]

...It’s these businesses that are being damaged, not the VCs. At least not directly...

I disagree. If a VC outfit gives $100 Million to a startup in exchange for 30% of their stock, and the startup looses that money because a bank failed, the VC outfit now has worthless stock. They have been damaged.