As a 40-year-old banking institution, Silicon Valley Bank (SVB), wind down operations, many venture capitalists and investors joined hands and decided to reduce the impact in the case of the bank “will be bought and properly capitalized.”
About 125 VCs and investors signed a statement supporting SVB as a way to limit the downfall of the bank and the demise of the tech company. Venture firms include Sequoia Capital and General Catalyst.
Several VC leaders met today to discuss the fallout of SVB. This is a joint statement from all of us. @Accel @altcap @BCapitalGroup @generalcatalyst @eladgil @GreylockVC @khoslaventures @kleinerperkins @lightspeedvp @MayfieldFund @Redpoint @RibbitCapital @upfrontvc pic.twitter.com/7OtHq0zwT1
— Hemant Taneja (@htaneja) March 11, 2023
A group of investors for high-profile companies met via Zoom in several meetings, revealed a Bloomberg report. Hemant Taneja, CEO of General Catalyst, initially announced a joint statement from several VCs, showing support for the bank. It reads:
“If SVB will be acquired and properly capitalized, we will support and encourage our portfolio companies to continue our banking relationship with them.”
In parallel, the start-up incubator Y Combinator, as well, sent a petition that demanded “depositors are made whole, and order regulations to prevent this disaster.”
Currently about 2800 founders with 180,000 employees have signed up.
About 44% of them are based outside of California.
— Garry Tan 陈嘉兴 (@garrytan) March 12, 2023
According to Y Combinator CEO Gary Tan, the petition – addressed to regulators including Secretary Janet Yellen and Chairman Martin Gruenberg – has drawn signatures from approximately 2800 founders and 180,000 employees at the time of writing.
“Everyone knows that we have a role to play in trying to calm the situation,” Taneja told Bloomberg. However, this dispute drives to save SVB, the famous Indian businessman Ashneer Grover reminded Taneja that the banks do not ask to be saved by passing the bureaucracy, UN-type participants’ resolutions – take a dig at the typical VC mindset pour money to fix the problem. “Requires intention and balls of steel!” the end.
related: The UK branch of Silicon Valley Bank was closed by the Bank of England
Hours after the USD Coin (USDC) lost its peg to the US dollar, reports have not been confirmed about the resolution momentarily bringing back token prices to nearly $1.
Although the current reports have not been verified, several sources confirm that many different tracks for resolution are being worked on and that depositors will return “at least 50% of their deposits” in the coming weeks.