![]() Many took rapid measures to move money into new banks and diversify their accounts. ![]() But she didn’t know how many funds she would even have past the $250,000 that were guaranteed insured, until the Fed’s announcement.īut even for those that don’t bank with SVB, the fear of contagion this weekend was real, especially for brands using other startup-associated banks in the Bay Area. Powell spent the weekend opening a new bank account at Chase during its limited opening hours. We were sort of hoping beyond hope that it wouldn’t, but we wanted to make sure that we were at least doing everything we could to get enough cash to operate and pay payroll, ” she said. “None of us wanted to see it turn out the way that it did. She posted a TikTok video about the experience over the weekend. Kinfield had attempted to get the money out of the bank on Thursday, but the transfer did not go through before the bank froze on Thursday afternoon. Founder Nichole Powell said that the last four days have consisted of “sleepless nights.” However, she said she was finally “able to take a breather” when President Biden announced on Monday morning that the Federal Reserve would be backing up 100% of the bank’s deposits, not just the $250,000 per account that is insured by the FDIC. Outdoors personal care brand Kinfield, for example, had 100% of its funds in Silicon Valley Bank when the news of its collapse broke. ![]() Although best known as a bank of choice for tech startups, it was also used by beauty startups, especially those with funding from Bay Area VC firms active in the DTC consumer goods world. The most acute crisis certainly came for startups using Silicon Valley Bank. “I didn’t sleep Friday night or Saturday night.” While she didn’t name the brands, she said that two of Verity’s portfolio companies were impacted, although not those where the company has a majority investment. I’ve never seen anything like it,” said Tina Bou-Saba, co-founder and managing partner of Verity Venture Partners, which works with several beauty brands including Dae and Noto Botanics.
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