Over 95% of the deposits in SVB are not fully FDIC insured (aka they are all over $250k).  The way SVB runs their funding, you WILL do all of your banking with them.  This is actually a good thing - SVB specializes in tech start ups, if there is a finance issue with one of these, they can address it quickly in house.  Money can be moved around to smooth daily or weekly hiccups out. 

The thing is - SVB has the money, they just didn't have enough liquid assets.  They had so much they couldn't lend it all out, so they put the excess in the most secure financial instrument in the world - 10 and 30 year T-bills.  What they didn't do was react to the Fed telling everyone for the past year that interest rates are going up.  SVB should have adjusted their mix - they took a gamble and lost.  The shareholders might take a small cut, but it won't be much.  The money is there - just in 10 & 30 year T-bills.

That being said, no bank on the planet would survive a bank run that has 24% of it's total cash go out in a single day.  Nobody.

A few of the start up will go under - but the ones that do were going under anyway - it will be quick and painless, rather than long and drawn out.

As we speak - hedge funds are calling companies and trying to buy everything right now for between 60 to 80% of it's value.  They know just about everyone will get through this.

And $&#* PayPal.  Everybody has a PayPal story.