Is SVB cooked? Or can the startup community rally and together raise the funds needed to buy SVB rather than having it be sold piece by piece by the FDIC?
What would it take to buy it? If the VCs and founders deciding where $100B+ of deposits go decide to support SVB, perhaps not much. Buy the assets of the bank for $1. Raise $1B for working capital, with 80% of equity to investors and 20% to management. Restore confidence and do a bit of cleanup and then take it public again and it is worth $20-30B for a 20x return to investors within one year.
All the startups would get 100% of their deposits back quickly so they can make payroll for their 1M+ workers. And this important tech institution would be back serving their startups and VCs.
Raising $1B would take just $1k from each of the 1M+ employees who work for companies who bank at SVB. Or $10k from 100,000 people. Or $100k from 10k people. Or 1M from 1000 VC GPs.
So many people on social media have shown a lot of love for SVB in the last three days. Could all that love translate into enough fundraising to bring the bank back?
Are you in? http://savesvb.com