Wefunder used Boston Private Bank - later acquired by Silicon Valley Bank - as one of our escrow providers to hold investor funds.
On Friday, Silicon Valley Bank was taken into receivership by the FDIC.
There was never any risk of losing investor funds. All funds held by Silicon Valley Bank were 100% FDIC-insured. Individual investors on Wefunder did not meaningfully exceed the $250,000 FDIC insurance threshold*.
In addition to the FDIC insurance, the federal government over the weekend guaranteed all uninsured deposits. While Wefunder investors did not need this additional guarantee, this action resolved the broader banking crisis.
Silicon Valley Bank no longer exists. We now have 100% access to all investor funds through their successor bank.
Wefunder remains fully operational without any disruption to our services. Cash withdrawals, investment cancellations, investor payments, and company disbursements are proceeding as normal.
The FDIC system worked as designed to protect the small depositors on Wefunder. We will continue to work with multiple banking partners to maximize the amount of funds insured by the FDIC.
* One investor had $250,100. Wefunder would have covered the uninsured $100.
