The collapse of start-up backer Silicon Valley Bank this week continues to cause ripples across the tech industry, with Etsy the latest company to voice concerns after announcing a transaction freeze.
“I noticed today my money that was supposed to be deposited to be available tomorrow was never sent to my checking account,” one Etsy seller said in a video posted to TikTok on the handle amgeee1. “Then I get an email saying because of the Silicon Valley Bank they canât issue my deposit.”
“My money, that I worked hard for, they can't send to my bank account,” she continued, revealing she cannot pay her mortgage as a result of the transaction freeze. “The money I was expecting to have in my bank account tomorrow they can't send to me. So why is that my problem?”
The Federal Deposit Insurance Corporation (FDIC) announced Friday that it would close SVB, until then the 16th-largest bank in the U.S., marking the worst U.S. financial institution failure since the Great Recession.
The bank held a reputation as a go-to for a number of Silicon Valley industries and startups. Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.
SVB's collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment. The bankâs shares had fallen 60% on Friday morning after a similar drop the day before.