Banking crisis leaves Utah company with lessons learned

Mar 15, 2023, 5:17 PM | Updated: 5:21 pm

a line forms at silicon valley bank, which brought a banking crisis days earlier...

SANTA CLARA, CALIFORNIA - MARCH 13: People line up outside of a Silicon Valley Bank office on March 13, 2023 in Santa Clara, California. Days after Silicon Valley Bank collapsed, customers are lining up to try and retrieve their funds from the failed bank. The Silicon Valley Bank failure is the second largest in U.S. history. (Photo by Justin Sullivan/Getty Images)

(Photo by Justin Sullivan/Getty Images)

SALT LAKE CITY — A Utah seed fund, Kickstart Fund, found itself in a tough spot this week when Silicon Valley Bank collapsed. Many of the companies Kickstarts supports were left in the lurch because they banked with SVB. 

General Partner of Kickstart Curt Roberts joined Dave and Dujanovic to discuss the company’s hectic week.

Roberts said leaders at the company realized there was trouble last Thursday, as news of SVB’s losses started to come it.

While there was a risk for Kickstart, Roberts said leaders were more concerned about the condition of the companies that they serve. 

According to Roberts, many of the companies they support bank with SVB. Kickstart was concerned about whether or not those companies would be able to make payroll because of the collapse.

After hearing the news, Kickstart began a deep dive into its company portfolio to see who banked with SVB and how much they had in those accounts.

“We called all of those CEOs, figured out what their payroll and other bills were going to be the following week. So we knew exactly what the shortfall might be for these companies’ ability to pay their bills.”

Then, Kickstart contacted a few different banks that were creating programs to provide temporary support to companies affected by SVB’s collapse. But before they could follow through with any of those programs, the U.S. government announced that it would be stepping in.

Roberts said of all the companies he knew of — which sought transfers or to get bills paid — had their requests go through.

Lessons learned

In the wake of the banking crisis, Roberts said Kickstart will be giving out some advice to the companies it supports.

“We’re going to be advising companies to have a diversified plan for the distribution of their deposits,” Roberts said, adding, “That amount of concentration in a single bank is risky.”

But the banking crisis doesn’t mean all faith in the system is lost. 

“I’d like to say this is a one-off circumstance. It’s definitely one we need to learn from as a country and continue to sort of refine the programs around which we support these banks and support companies that trust their money in these banks,” Roberts said.

Kickstart will not be changing its attitude about banks because “it’s a necessary part of our system [and] performs critical function.”

Roberts said the crisis is a unique circumstance we all can learn from.

We want to hear from you.

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

Business + Economy

Food truck employees work through scorching temperatures to keep their business going even during a...

Eric Cabrera

How food truck workers get through the intense heat

Food truck employees work through scorching temperatures to keep their business going even during a relentless heat wave.

2 days ago

The Christmas Box House's Christmas in July campaign is asking for donations, which have lagged beh...

Brian Carlson,

Christmas Box House desperate for donations

At The Christmas Box House, Christmas in July is their campaign for donations, which have lagged behind this year.

3 days ago

FILE - Firearms are displayed at a gun shop in Salem, Ore., Feb. 19, 2021. Firearm stocks have rise...

Aimee Cobabe and Emma Keddington

Firearm stocks rise after attempted assassination of Trump

Along with a rise in firearm stocks, the Dow Jones saw record highs following the past week's big news events.

3 days ago

FILE: New apartments under construction in Herriman are pictured on Feb. 22, 2021. The Utah rental ...

Daniel Woodruff, KSL TV

Utah rental market softens, but for how long?

After years of high prices, the rental market in Utah is softening a little, thanks to a lot of new units currently hitting the market.

4 days ago

The Milkshake Factory from Pittsburg is opening its doors in Utah, and with it comes a unique story...

Michael Camit

The Milkshake Factory brings a unique story to Utah’s ice cream scene

The Milkshake Factory from Pittsburg is opening its doors in Utah, and with it comes a unique story about the American Dream.

5 days ago

Sugarhouse Barbeque is calling it quits and road construction is a big part of the reason, accordin...

Tammy Kikuchi

SugarHouse Barbeque Company closing after struggles with road construction

Sugarhouse Barbeque is calling it quits and road construction is a big part of the reason, according to General Manager Jeff Berg.

8 days ago

Sponsored Articles

A young woman smiles while reading the menu at a lakeside restaurant, enjoying the panoramic view o...

Bear Lake Convention & Visitors Bureau

The best restaurants to try in Bear Lake

Save this guide to the best restaurants in Bear Lake when you need to find a place to dine during your next visit.

Female leg stepping on weigh scales. Healthy lifestyle, food and sport concept....

Health Utah

Sustainable weight loss: the science-backed way to achieve it

Learn more about Debbie's weight loss journey with Health Utah, who have a unique weight loss philosophy for success.

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...


Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

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.

Banking crisis leaves Utah company with lessons learned