> a lot of VCs had significant money in that bank

Everyone I know pulled yesterday.

The trouble in a bank run is that it’s impossible for everyone to have gotten their money out yesterday. Those first in line caused the collapse, the rest are out of luck. Nice to hear you have lucky friends.

Everyone who can read a balance sheet could figure out there was a lot of trouble after the announcement of the sold securities for a significant loss. The VCs telling portfolio companies to ride it out may have been looking for bagholders to ensure that they can get their own money out.

I know a lot of individuals and startups, most over the $250k limit, who did not get out in time. SVB disabled wires and transfers for many yesterday.

In a fractional reserve people can't all win

Don't know why this is being downvoted - if a bank takes $100 and keeps $20 liquid while investing $80, and then everyone comes for their money, the first $20 is available but the rest will be slower if not completely lost. If everyone tried to take their money yesterday some people will win but a large number will lose... If there wasn't a run on the bank chances are it could have (slightly?) weathered the storm.

VC firms don't generally have tons of cash sitting around compared to their fund size. When you raise a fund, an LP does't just hand you $20 mil, then simply promise to send you up to $20 mil when you ask for it.