• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
CommentaryStartups & Venture

Why I pulled my startup’s money from SVB the day before the collapse–and what lessons banks and entrepreneurs should learn

By
Ben Lewis
Ben Lewis
Down Arrow Button Icon
By
Ben Lewis
Ben Lewis
Down Arrow Button Icon
March 20, 2023, 2:35 PM ET
A customer stands outside the shuttered Silicon Valley Bank (SVB) headquarters on Mar. 10, 2023 in Santa Clara, California.
A customer stands outside the shuttered Silicon Valley Bank (SVB) headquarters on Mar. 10, 2023 in Santa Clara, California.Justin Sullivan - Getty Images
Add Fortune on Google for similar content.

Exactly 14 days before Silicon Valley Bank (SVB) collapsed–and 13 days before I withdrew my company’s funds from SVB–I read a market report. Published by SVB, the otherwise routine report illuminated a concerning reality for startups. Startups have less cash on hand, which means less runway. Additionally, the average length of time between financing rounds is greater now than at any point in the last three years. Growth has slowed. And valuations have taken a big hit.

Of course, it’s no surprise to any founder or CEO that the fundraising market has been challenging. But seeing the extent of the softness was a stark reminder of just how rough it was out there.

So, you may be wondering… Did I have a crystal ball? Did I connect the dots between startups having less cash, and SVB (which was unofficially the “bank of startups”) having dwindling deposits and a liquidity crisis two weeks later? Did I see this coming?

No. I’m not sure anyone could have.

But as the rapidly developing rumor mill whirled through startup circles late last week, I wasn’t comfortable taking a risk or hedging my bets. A wait-and-see approach wasn’t going to cut it. On Thursday morning, I pulled out nearly all of Little Spoon’s cash that was deposited with SVB.

Core to how I lead is putting who I serve first: my employees, my customers, and my investors. The livelihoods of our team and the tens of thousands of families who come to our website every week for their children’s meals may have depended on this decision. So I acted fast and got us out. That choice saved my company from the gut-wrenching tailspin that many others had to endure in recent days–and it could have very well saved us from absolute disaster.

I still remember the first meeting I had with SVB. It came shortly after my co-founder and I waited in line at a Wells Fargo branch for 45 minutes to simply get an appointment to send a wire, only to sit through another 45 minutes of tedious paperwork while we simultaneously endured an unprompted mortgage pitch.

SVB was different. They believed in big ideas and were readily willing to place bets on founders of early-stage businesses that a normal bank would simply never make. They weren’t just the largest, most prolific bank to startups and venture-backed companies in the world, SVB was also a go-to for sharing insights and community-building, and offered tremendous best-in-class service. 

It was truly special. And unfortunately, we are now left with a big void in the startup ecosystem.

Where do we go from here? What can we learn as Americans, as founders, and as individuals who quickly rallied around the brands we love in the wake of the shutdown late last week? 

As I reflect on the insanity of the last few days, a few learnings come to mind. 

We must double down on the importance of our work. 

Startups play a critical role in challenging the status quo and demanding better. That work is big and it means the potential for a better life for the masses. It’s time for big banks, large companies, and the government to lean into this reality. 

Just take my business. The market for baby and kids’ food has been plagued with quality issues, trust concerns, recalls, and a lack of regulation. This can’t be the norm and it sure as hell is not what more than 11 million parents and 40 million children in the U.S. deserve. 

Facing the prospect of seeing so much loss in the startup space meant staring down the possibility of massive steps backward for society at large. We can’t let that happen.

The startup community is loud and fierce

If we needed a reminder of how passionately we believe in one another, a bank run sure did the trick. Countless text threads, email chains, and efforts to help spread the word on startups in dire need of funds–this small, but mighty community knows how to act fast, launch campaigns, and within a mere few hours rally the masses.

We proved how quickly we could unify efforts and support one another. Let’s not lose that. It’s certainly not lost on me how easily Little Spoon could have been in the precarious position so many startups found themselves in the last few days. The truth is, there are countless companies out there who share our mission to make parents’ lives easier, or, perhaps, their missions are even more noble. Let’s help like-minded companies so we can all have even more impact.

The worst can happen. 

You’d think we’d learn this from the pandemic, but memories are merciful to us. This shutdown seemed unfathomable, but here we are on the other side, looking to a new uncertain path forward. It’s never been more critical for founders to have contingency plans in place and a range of solutions at the ready in case of, well, who knows what. A few bank accounts can’t hurt, either.

Fortunately, this situation is not as dire as initially feared and founders can breathe a collective–albeit hesitant–sigh of relief. 

As for the future? One thing we’re great at is imagining its potential. None of us will stop dreaming anytime soon.

Ben Lewis is the CEO and co-founder of Little Spoon.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

More must-read commentary published by Fortune:

  • SVB’s collapse adds financial instability to the Fed’s inflation fight. A recession may not be the worst outcome
  • The return to the office once seemed inevitable. A new study shows companies are already reversing course
  • How the IMF naively parroted Putin’s fake statistics–and botched its economic forecast for Russia
  • Local communities are buying medical debt for pennies on the dollar–and freeing American families from the threat of bankruptcy
Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.
About the Author
By Ben Lewis
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
19 hours ago
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
CommentaryCareers
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
By Jeremy FainJuly 1, 2026
19 hours ago
mr
Commentary250 Years of Innovation
America needs 3.8 million manufacturing workers. This CEO has a blueprint to find them
By Mark RayfieldJuly 1, 2026
19 hours ago
usa
Commentary250 Years of Innovation
America at 250: why the Constitution was built to restrain government, not celebrate majority rule
By Steve H. HankeJuly 1, 2026
19 hours ago
t
CommentaryMedia
Netflix could turn NBC into its biggest bet yet — and this time, the math actually works
By Jeffrey Sonnenfeld and Steven TianJune 30, 2026
2 days ago
wb
CommentaryLeadership
I grew BDO from $600 million to $3.4 billion. Here’s the 3-part formula that made it possible
By Wayne BersonJune 30, 2026
2 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
23 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
21 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
17 hours ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.