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More than three hundred venture capital firms have signed a joint statement vowing to do business again with Silicon Valley Bank if it is „purchased and appropriately capitalized,“ after the financial institution failed on Friday.
Regulators shuttered SVB and seized its deposits on Friday following a run on the bank on Thursday.
Preceding the bank’s failure, SVB CEO Greg Becker had announced a sudden need to raise $2.25 billion to shore up the financial institution’s balance sheet overnight on Wednesday. A dramatic wave of deposit withdrawals followed on Thursday.
Shares in the bank plummeted and triggered a trading halt on Friday before the California state regulators took over.
The SVB failure marks the largest in U.S. banking since the 2008 financial crisis and the second-largest ever.
Some venture firms withdrew their own money and instructed their portfolio companies to withdraw their deposits from SVB before the run. Reportedly Founders Fund, USV and Coatue were among those to do so.
