They didn't have to open an account with SVB, they could have gone with JP Morgan or another reputable but traditional financial institition. Ya know, a household name of some sort. Seems like a bunch of folks got suckered by clever "startup focused" advertising and convenience features on the part of SVB. Banking is an old industry, something about how the founders mind works led them down the path of believing the same sort of logic must apply to banking and so they decided to go with the new kid on the block. At least personally, hearing about something "innovative" in the context of finance is a huge red flag.

Your local pizza delivery wouldn't be caught out like this but somehow highly educated startup founders all were.

In other words, I'm not sure regulatory capture has much to do with this situation.