Local start ups experience ‘whiplash’ of emotions with SVB collapse

Mar 13, 2023, 3:22 PM | Updated: Aug 13, 2023, 7:59 pm

A Silicon Valley Bank sign is shown at the company's headquarters in Santa Clara, Calif., Friday, M...

A Silicon Valley Bank sign is shown at the company's headquarters in Santa Clara, Calif., Friday, March 10, 2023. The Federal Deposit Insurance Corporation is seizing the assets of Silicon Valley Bank, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. (AP Photo/Jeff Chiu)

(AP Photo/Jeff Chiu)

SALT LAKE CITY — Local tech companies have had a wild weekend dealing with the uncertainties of the Silicon Valley Bank collapse fallout.

The founder of one Utah early-stage start-up spent the weekend brainstorming how to keep her company afloat.

“I felt betrayed, I felt angry, I felt sad, I felt devastated,” Donde CEO and co-founder Rilee Buttars said upon learning of SVB’s collapse. “It was this moment of like what emotion to I pick.”

Buttars said she went from thinking her company may not survive, to making contingency plans, to now feeling okay after the news that the Treasury Department, Federal Reserve and FDIC were going to make SVB depositors “100%” whole.

Donde is an early-stage start-up that offers travel as a benefit to companies. They had almost all their capital in SVB. 

“[It’s been] oh my gosh whiplash,” Buttars said. 

Local tech calls on federal delegation

Meanwhile, another local founder spent the weekend pushing Utah’s federal delegation to act quickly.

Utah-based start-up Artifact‘s founder, Nate Sanders rallied dozens of other Utah tech company leaders to send a letter to Utah’s federal delegation urging them to make depositors whole beyond their insured amount.

Sanders tweeted that beyond their operating costs, their company’s employees who have mortgages, car payments and childcare expenses were at risk of not getting paid.

Buttars credited those leaders Monday, specifically, Utah’s senators and Gov.Spencer Cox for speaking out and not making the issue political. She believed they were “for standing up and advocating for the small businesses that this hurt.” 

Buttars said she’s also seen a lot of finger-pointing online. She said that for her company, it didn’t make sense to diversify their deposits, as some online have suggested companies should have done to protect themselves. 

“I think people are naive to said ‘oh you should have known.’ No. No one did that. Diversification wasn’t common, especially with a bank like SVB. They had been around for 40 years, they were standard in the industry,” she said.

Though Buttars did said she will make some changes moving forward. Namely, making sure her deposits don’t exceed the amount of her FDIC insurance amount.

“Absolutely now we will now prepare.”


We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Rural wildlife firefighters, "Hot Shots"...

Michael Camit

Utah is struggling to retain its rural ‘Hotshots’

Filling jobs of rural wildlife firefighters can be difficult due to the cost of living according to the Utah Division of Forestry, Fires and State Lands.

23 minutes ago

A car is filled at a gas pump in Sandy on Tuesday, March 19, 2024....

Adam Small

Experts predict record number of drivers, lower Memorial Day gas prices

Experts have predicted that 43.8 million people will travel this weekend. They could experience lower gas prices.

1 hour ago

People skate at Millcreek Common in Millcreek on Monday, Dec. 5, 2022. The New Americans Internatio...

Eric Cabrera

New Americans International Market offers space for newly settled Americans to share culture and connect

The New Americans International Market at Millcreek Common is helping new refugees and immigrants connect with the community.

4 days ago

A customer checks prices while shopping at a grocery store in Wheeling, Ill., Friday, Jan. 19, 2024...

Curt Gresseth

Inflation eases but grocery store prices in Utah still stinging

Inflation eases slightly in April, but in Utah, consumers are still feeling the pinch of grocery-store prices.

5 days ago

FILE - A street sign is seen in front of the New York Stock Exchange June 14, 2022. The U.S. stock ...

Simone Seikaly

LISTEN: Utah analyst on stock market highs

Stock market investors are reportedly energized by a report showing inflation is cooling somewhat across the U.S.

5 days ago

An EV charging in Salt Lake City. SLC, like many cities around the United States, lacks the chargin...

Alexandrea Bonilla

EV charging is lacking in Salt Lake City

Only about 1.6% of Salt Lake City listings are EV friendly. That makes homes with electric vehicle chargers a hot commodity.

5 days ago

Sponsored Articles

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.


Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

Local start ups experience ‘whiplash’ of emotions with SVB collapse