The interest rate exposure of Silicon Valley Bank was a known risk, as they invested heavily in long-term, low-yield mortgages, which lost significant value when interest rates rose.

If I were running the FDIC, I would never have allowed banks to have such high interest rate exposure, which contributed to the failures of Silicon Valley Bank and First Republic Bank.

Silicon Valley has historically struggled with operations, and as business complexity increases, it's becoming harder to succeed.

The government needs to step in during banking crises, as seen in March 2023 when the Federal Reserve raised interest rates to combat inflation, leading to the collapse of Silicon Valley Bank and First Republic Bank.

Venture capital has historically been overfunded, which creates a competitive environment where founders often face multiple venture capitalists vying for their attention.

The venture capital industry often struggles with accountability, as firms may hesitate to fire underperforming partners due to reputational concerns.

This debanking phenomenon has been particularly prevalent among crypto and fintech entrepreneurs over the last four years, as they face increasing pressure to protect established banks.

Venture capitalists investing in FinTech often worry about whether a company can fund its origination costs, as mismanagement can limit future opportunities.

During the ZIRP period, banks had to find places to invest their money, leading to a surge in venture capital investments as they sought higher yields.