Community in a Crisis

This article, originally written for our newsletter subscribers for LOUD Capital, was to share what the company went through the last few weeks in lieu of our monthly content on venture capital, education, and the social impact it can have on society. The focus was on our experience when the news broke that the FDIC had seized Silicon Valley Bank (SVB), a situation made more complex by the reality of having most of us (including myself) in Austin, TX at the SXSW conference.?

The purpose of attending this weeklong event was to grow our network, participate in panel discussions (both as moderators and panelists), and contribute to conversations on venture and entrepreneurship. SXSW was also an opportunity to share how LOUD's #VentureForPeople mission contributes positively to society and creates more impact in underserved communities.

LOUD started banking with SVB a few years ago, a decision that was mainly driven by the fact that (at the time) most "mainstream" banks did not allow VCs and venture-backed companies to open accounts. SVB was not only opening accounts for us; they were also knowledgeable and supportive of the venture capital space and had excellent customer service. It was an online-only bank, and making remote deposits was new to many of us (back then), but we adopted this and ended up opening many accounts for each business and fund we had.?

The benefits of SVB made sense for many entrepreneurs and investors. Hence, an entire industry of venture capital and startups/growth companies were customers and directly affected when the news broke out. Was it surreal? Absolutely. Was it affecting many people around us at the conference? Nearly everyone we encountered was talking about SVB. Was it affecting many companies we work with, including portfolio companies? No doubt. Emotions were high, news updates were sporadic, and investors and portfolio companies were emailing almost every minute.

However, the best measure of a company is how they deal with adversity.

I am incredibly proud of how our team handled the situation. We quickly managed our accounts, covering our investor funds, alternative investments, payroll, services, and more. Our communications team was proactive in messaging investors and portfolio companies, and we were even fast to explore secondary banking options in real-time. This chaos was all amid a conference with thousands in attendance, which included meetings, interviews, media coverage, event management, and more from the LOUD team.

There are important thoughts in looking ahead: Our next step will be to diversify our banks, having at least two different banks with some accounts based on our operations, our business lines, and our funds. We will continue building and leveraging our current banking relationships and ensure one is with the big four banks (Wells Fargo, JPMChase, BofA, Citigroup.)?

We will continue working with partners/vendors with excellent customer service, business transparency, and crisis management experience. We will consider that these unprecedented events can occur again, and revisit our business operations and capital flow as we move forward. Since we have many investors, including institutional LPs, we will continue to be the best stewards of investment and bring transparency to you all. We will continue caring for our people and stakeholders, as such events can be overwhelming and stressful. Lastly, we will continue to communicate about our business and share our experiences so others can learn how a small company with a big vision can manage uncertain times.