[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.

[semimojo]

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.

True, but I consider that to be an indirect effect.