This is a hard day for the startup community. Iβve got a ton of respect for SVB and deeply understand how stressful this situation is for their customers and employees.
Weβve been hard at work at Mercury to quickly onboard hundreds of customers and provide as much peace of mind as possible. Iβve gotten some questions today about Mercury and our partner banks that I want to address.
Mercury is profitable and growing. We work with partner banks who operate sweep networks to spread deposits across other large, trusted banks (e.g. Goldman, Wells Fargo). This allows us to offer $1M in FDIC insurance, and reduces the risk of any single point of failure.
Customers can also put money into Mercury Treasury to buy mutual funds, including US Gov-backed T-bills (accounts are SIPC-insured up to $500K). This is a great way to diversify where your excess funds are held.
Our partner banks are diversified across multiple industries, not just startups. They've stayed disciplined on investing throughout the low-rate environment & have kept their bond portfolio with short durations, meaning thereβs no big mark-to-market risk.
Weβre committed to giving all our customers, new and existing, an unparalleled banking experience that you can read more about here: https://t.co/SndBWLF2a8
DM/comment me if you have any questions or feedback.