Most portfolio companies have more than the FDIC limit. My preference is to have 2-3 months in cash, the rest in commercial paper (which would not be threatened by the bank failure, but did "break the buck" in 2008). In the early stage 2-3 months of cash is much less than the FDIC limit, but later on that could change.

I've been using SVB since the mid 90s, but most recently chose First Republic instead. FR poached some of the great SVB people anyway so it wasn't a huge change.

FWIW, SVB got into trouble in the 80s due to their real estate practice. They stuck to their knitting after that (except they kept their wine practice, which is small and I guess amusing) so I find this situation rather interesting.