TechDigits

Tech news
Thursday, Mar 23, 2023

'I don't know how this ends': Mom with 4 kids in Ohio who owns small startup says SVB mess is not just a '1% problem'

'I don't know how this ends': Mom with 4 kids in Ohio who owns small startup says SVB mess is not just a '1% problem'

The collapse of Silicon Valley Bank has sent the tech world into a spiral. For smaller startups, the fallout could be life-altering.
The collapse of Silicon Valley Bank this week has sent companies from Etsy to Roku into disarray. But for some smaller startups, the bank's shutdown is particularly harsh.

"The collapse of SVB might look like a 1% problem that only impacts the coastal-tech-elite. Not true," wrote Lindsey Michaelides on Twitter. Michaelides is the founder and CEO of the startup Strongsuits, which sells organizational software.


"This impacts small businesses made up of hard-working people making modest mortgage payments in the midwest," Michaelides continued. "This impacts parents putting dinner on the table."

Silicon Valley Bank, a major financial institution that frequently worked with startups, collapsed days ago, throwing the tech world into a spiral. The bank, which just last month ranked among the top 20 in Forbes' list of best US banks of 2023, was shut down by regulators Friday and the FDIC took over control.

The collapse has affected companies like Etsy, forced to delay payments to many who sell goods on its site. Other major companies impacted by the collapse include streaming device-maker Roku, which had nearly $500 million in the bank, and the online video game platform Roblox.

In a lengthy Twitter thread, Michaelides described her risky decision to launch Stronguits in 2018 just after her second child was born. She soon learned she was pregnant again with twins, but kept pushing to make Strongsuits work, she wrote.

"I grew the business while navigating a high-risk pregnancy. I'd stop to see my ob en-route to the airport to get cleared to travel," she wrote. "Later, I pitched via Zoom well before it was acceptable. The hard work paid off. I secured our 1st investor shortly after my twins were born."

Now, Michaelides isn't sure what will happen to Strongsuits and her 15 employees, or what's next for her family.

"I don't know how this ends. I know that the financial future of Strongsuit; my team and my family are at risk w/ the collapse of SVB. I know that my story and the stories of thousands like me that have been impacted by SVB's collapse do not match the current narrative," she wrote. "
Newsletter

Related Articles

TechDigits
Close
0:00
0:00
Donald Trump arrested – Twitter goes wild with doctored pictures
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Russian Hackers Preparing New Cyber Assault Against Ukraine
A brief banking situation report
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Being a Tiktoker might be expensive…
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
The desk of King Carlos Alberto of Sardinia has many secret compartments
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
First generation unopened iPhone set to fetch more than $50,000 at auction.
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Tesla reported record profits and record revenues for 2022
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
After Failing To Pay Office Rent, Twitter May Sell User Names
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Solar + Powerwall ensures you never lose power, even if the grid goes down
This man paid for strangers' grocery and it moved them to tears
Meta introduces a new version of Mark Zuckerberg
Virtual Reality on billboards: BMW advertisement on Times Square
Apple CEO Tim Cook says coding should be taught as early as elementary school: 'It's the most important language you can learn'
Apple Executive Resigns After Viral TikTok Shows Him Making Crude Jokes
Huawei is not only better technology, but also protecting users better: Apple Warns Of Security Flaw For Iphones, Ipads And Macs
Mark Zuckerberg warns many teams will ‘shrink’ as Meta revenue drops
Elon Musk reportedly begged for forgiveness after his affair with Google co-founder Sergey Brin's wife
J.P. Morgan’s wealth management guru has some advice for recent college graduates on managing money and building wealth
Pentagon widens scope of UFO-hunting unit
Bezos' girlfriend Lauren Sanchez gives $1M to group focused on migrant kids at US-Mexico border
Hong Kong gets its first metaverse churches with avatars and virtual preachers
The ‘Dirty Quid Pro Quo’ Between Democrats and Big Tech
Elon Musk swore in March not to sell any Bitcoin, but Tesla cashed out 75% of its Bitcoin holdings amid the crypto winter just months later
Crypto winter continues at Gemini as another round of layoffs hits Winklevoss crypto exchange
×