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What happens to the deposits above $250k in this case?

Ouch for startups that didn't pull.

they turn into creditors of the bank to try to get the money back from asset sales. That could take years though it isn't quick

Isn't that a death sentence for a startup? Even if you get your money back years later, you're company is already dead because it can't make payroll. At that point, the money will just go back to the VCs?

basically but the FDIC usually comes in real quick if they think a collapse might happen. Rumor is there's enough assets to cover the loses but it just couldn't handle the run happening.

I believe SVB will be open for business on Monday

From the FDIC release there will be an advance payment on uninsured assets within the next week.

My guess is they take a week to look through the books, determine an absolute floor for the value of assets, and use that floor to proportionately pay out uninsured depositors.

So, some additional funds will be available soon. We don't yet know how much.

The rest will probably be locked up while the process plays out. I've heard different timelines for that.

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