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The failure of SVB was caused by two coinciding factors: an overreliance on uninsured deposits and significant unrealized losses on long-term securities.

: High interest rates also made equity capital harder to raise. Startups began drawing down their deposits at SVB to fund operations, as their "runway" was no longer being replenished by new venture rounds. ABV.vg.svb

: As startups raised massive rounds of equity (venture growth), they deposited the proceeds into SVB. SVB then used these deposits to provide loans back to the same ecosystem. The SVB Crisis: A Collision of Risks The failure of SVB was caused by two