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Thanks to NordProtect for sponsoring this video. https://nordprotect.com/girdley Enjoy this exclusive deal of up to 79% off for the two year plan with the code Girdley! What happened to Silicon Valley Bank? This video breaks down the rise and fall of Silicon Valley Bank, one of the fastest and largest banking collapses in U.S. history. Once the go-to bank for startups, venture capital firms, and the tech ecosystem, Silicon Valley Bank built a powerful niche by embedding itself into the financial infrastructure of Silicon Valley. Looking to become a channel member to support our production and receive exclusive content? Sign up here: https://www.youtube.com/channel/UC-mfn4ibOC5ewLcpmgl0C4g/join Get the 2-minute cheat sheet for this video → https://girdley.com/youtube 👇 SUBSCRIBE for more business breakdowns https://www.youtube.com/@Michael-Girdley?sub_confirmation=1 ------------------------------------------------------------------ ► Get my weekly letter to business owners: essential insights to run, grow, and stay ahead in your business → https://links.girdley.com/newsletter-yt ► For sponsorships or inquiries please reach out to: Contact@girdley.com ► Do you have a hat I should wear in a video? Send it to us: Contact@girdley.com ► Free events on all things small business: https://links.girdley.com/lectures-yt ► Deep dives on businesses for sale: https://www.youtube.com/@AcquisitionsAnonymousPodcast ► Follow me on Twitter/X: https://x.com/girdley ------------------------------------------------------------------ This Silicon Valley Bank documentary explores how a small institution founded in 1983 grew into a dominant force, banking over half of venture-backed startups in the United States. Its unique model—requiring startups to hold deposits while lending to them—created a powerful flywheel that fueled rapid growth during the tech boom. But as this business breakdown shows, that same concentration became its biggest weakness. During the COVID-era liquidity surge, deposits exploded by 271%, forcing the bank to invest heavily in long-term government bonds at low yields. When interest rates rapidly increased, those bonds lost value, creating billions in unrealized losses. At the same time, venture funding slowed, startups began withdrawing cash, and Silicon Valley Bank faced a liquidity crisis. A failed attempt to raise capital triggered panic among highly connected depositors, leading to a historic bank run with over $40 billion withdrawn in a single day. Within 48 hours, regulators stepped in and seized the bank. This business case study also examines deeper issues: risk mismanagement, lack of hedging, regulatory rollbacks, and the role of network effects in accelerating financial contagion. It highlights the principal-agent problem, where executives took excessive risks that ultimately harmed depositors and shareholders. The rise and fall of Silicon Valley Bank offers critical lessons for founders, investors, and operators about concentration risk, liquidity management, and the hidden dangers of rapid growth in financial systems.