Even for insolvent banks, a bank run is typically rare or if it happens, is a very slow-moving event because of FDIC insurance.

The difference here is that SVB’s customers did not understand proper corporate cash management practices and had deposits far in excess of FDIC insurance. So from a game theoretic perspective if you hear a whiff of insolvency then you want to pull your cash as fast as possible.

This is on startup CEOs as much as it is on SVB.