A WhatsApp group of startup founders who are immigrants of color ballooned to more than 1,000 members.
Questions flowed as the bank’s financial status worsened. Some desperately sought advice: Could they open an account at a larger bank without a Social Security Number? Others questioned whether they had to physically be at a bank to open an account, because they’re visiting parents overseas.
“The reason why we’re going to regional and community banks is because these banks don’t want our business,” Bradley said. Dufu raised $5 million as CEO of The Cru, a New York-based career coaching platform and community for women. It was a rare feat for businesses founded by Black women, which get less than 1% of the billions of dollars in venture capital funding doled out yearly to startups. She banked with SVB because it was known for its close ties to the tech community and investors.
, but banking experts say those claims were false. The bank slid into insolvency because its larger customers pulled deposits rather than borrow at higher interest rates and the bank’s balance sheets were overexposed, forcing it to sell bonds at a loss to cover the withdrawals. Historically, smaller and minority-owned banks have addressed funding gaps that larger banks ignored or even created, following exclusionary laws and policies as they turned away customers because of the color of their skin.
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