SVB had a unique niche with lots of requirements. Startups looking for VC funding were approved with large loans. The startup was then required to do 100% of their banking with SVB until loan was satisfied. In addition, they had to have office in close proximity so investors could check in. They had to move. The rent for office and housing in this area is among the most expensive; hence a need for more loans, then stay with bank longer, and so on… they were a well oiled machine fed potentially lucrative clients over and over. The innovators lose and they are the ones grinding. 😕 I’m not sure SVB saw it coming to an end the way it did, but surely they knew it wasn’t sustainable without reserves.