Historically, the FDIC was intended to protect consumer banking. $250k was enough coverage for most consumers, and consumers with more than that (back then) probably had an accountant savvy enough to know better than to keep all the eggs in one basket. The same goes for businesses (including startups). The SVB crash was a wake-up call for businesses that were careless with their finances, and they were lucky to get a (unprecedented) bail-out from an administration with an interest in their success.