The SVB collapse has been devastating in more ways than one: They supported women, minorities, & the LGBTQ community more than any other big bank. This includes not just diverse events, but actual funding. SVB helped us move one step forward; without them, we move two steps back.
— Christina Qi (@christinaqi) March 11, 2023
NEW – The death of a climate bank: With the implosion of Silicon Valley Bank over 1,500 climate and energy-tech companies could face problems.
In addition, more than 60 percent of community solar financing in the US involved the bank.t.co/BjwHw2iGfL pic.twitter.com/DA0copUdXn
— Disclose.tv (@disclosetv) March 11, 2023
2) Many companies had cash in SVB, including companies like Etsy. This impacts independent makers and artists. Even if you didn't bank with SVB, you'll probably start to feel the impact of it over these next few weeks.
— Christina Qi (@christinaqi) March 11, 2023
3) The SVB staff are one-of-a-kind. Many of them come from traditional banks with toxic cultures. SVB allowed them break the mold & create a healthy, innovative startup ecosystem. My heart goes out to all of the hardworking staff who were affected by this. This isn't your fault
— Christina Qi (@christinaqi) March 11, 2023
While it's easy to point fingers at SVB's bond traders, their comms team, the VCs who started the panic-induced bank run, or the startups who faced the classic prisoner's dilemma… at the end of the day, it was a lose-lose situation for everyone involved.
— Christina Qi (@christinaqi) March 11, 2023
Please keep that in mind before you judge or point fingers. Many people have been hurt by this, on all sides. While we wait for the FDIC's next move, let's work together to rebuild the startup ecosystem.
— Christina Qi (@christinaqi) March 11, 2023
They invested too much in the People of Color!
SVB Financial Group Announces $11.2 Billion Community Benefits Plan
Five-year plan expands commitments to small businesses, increasing access to the innovation economy and investing in underserved communities
In addition, SVB plans to adopt and implement a corporate supplier diversity program with a goal, by 2026, of contracting at least eight percent of its corporate supplier spending annually to locally-based businesses owned or led by members of historically underserved communities, such as people of color and women. SVB will also continue its commitment to increase management diversity within the organization and has signed on to Silicon Valley Leadership Group’s 25×25 program.
The Diversity, Equity & Inclusion Forum 2021
Strong presentations were given by industry leaders, and insightful discussions followed about mental health care access for people of color and those with marginalized identities.
The investment recipients are all organizations led by women and people of color, a priority area of investment defined in SVB’s Community Benefits Plan.
“The affordable housing units and small businesses financed by CDFIs are essential for thriving communities,” said Fiona Hsu, Head of Community Development Finance for Silicon Valley Bank. “We are pleased to continue our longstanding relationships with these CDFI partners, who will use the investments to make a positive impact in the historically under-resourced communities they serve.”
Step Forward: Fueling diversity in the innovation economy
Our inaugural event aimed to drive impactful conversations about the key diversity and parity issues facing the innovation economy.
Silicon Valley Bank recently held an event to focus on ways to encourage more people of color to seek opportunity in entrepreneurial fields – and engage companies, investors, and other industry allies to step up and tear down systemic barriers in the way.
h/t dr0id