Sisters Vanessa and Kim Pham, co-founders of Asian flavor kit company Omsom, recently took to social media to document their experience during Silicon Valley Bank’s (SVB) overnight collapse.
The co-founders shared that they held all their capital in SVB, which just days ago was one of the biggest banks for startups in the country. When the bank collapsed Friday following a run on deposits, the Federal Deposit Insurance Corporation (FDIC) placed it under control and froze its assets.
The Pham sisters were unable to access their company's funds, which left them uncertain about their financial situation. They shared their experience with their followers about coordinating with their team, strategizing alternative options for liquidity, securing short-term loans, and opening new bank accounts. The co-founders also reached out to their vendors to work out longer payment terms. They placed their trust in their community by going public via an open letter about the challenges the company was facing at the time.
Fortunately, on Sunday, the FDIC announced that all SVB depositors would be able to access their accounts on Monday.