There are a zillion ways to deal with this. Split up your cash. Buy private insurance. Whatever. They agreed to a particular contract---deposits insured up to $250,000, and then ex-post, when it turns out they should have done something different, they want special favors.
> Are you aware that SVB had exclusive banking clauses that preclude opening accounts with other banks?
That, in and of itself, ought to be a negative inducement to bank with them, and I think a good case could be made that such clauses should be prohibited by policy, as customer diversification across banks makes the financial system more resilient.
those clauses are a sign that SVB and the VCs are in bed together and if you take their money and agree to these terms you are complicit too. the VCs used SVB loans to their portfolio companies to magnify the effective size of their funds without themselves taking on that leverage. SVB got massive interest income.
