Except that Silicon Valley Bank has long been a trusted financial partner to many startups and venture firms that began nervously scrambling to figure out what to do.
Instead at the end of the market close Wednesday, they put out a convoluted press release that was received so badly that it was almost comical.
You might imagine that someone at Silicon Valley Bank would have paused to think: “Hmm, maybe today is not the right time to declare that we’re shoring up our balance sheet.” Evidently, they did not. Silicon Valley Bank shoots self in footĬonnie Loizos delves deeper in how SVB’s actions led to the abrupt shut down Friday morning. Venture firms are advising portfolio companies to move money out of SVBĪfter SVB announced that it intended to sell shares in pursuit of more capital, some VC firms, including but not limited to USV, Founders Fund, Hustle Fund, Inspired Capital and Valor Equity - advised startups to pull money out of SVB. Shares of Silicon Valley Bank began tanking sharply Thursday in the wake of the company’s announcement that it is raising additional capital by selling stock, taking a charge to roll over an asset portfolio to higher-yielding assets and extending its term-borrowing capacity. Here’s a timeline of the stories we’ve written about the SVB crash so far, to be updated as the story develops: Thursday, March 9 Silicon Valley Bank’s shares are tanking as mess unfolds The fast unfolding nature, the unprecedented Twitter-fueled bank run, and what exposure tells us about the interconnected nature of it. Instead of tossing you a half-baked take, as you can go to for those, I think the best way to understand the SVB story is to read it day by day. Silicon Valley Bank’s collapse, and its new life under the ownership of regulators, has certainly warranted its fair share of hot takes, real policy implications, and questions about the future of where startups keep their money. After spending hours speaking to founders and venture capitalists about Silicon Valley Bank’s surprising collapse, there’s one shared feeling: whiplash. Today’s space has been dedicated to our coverage on the matter, but we will be back to broader programming next week. Writer’s note: We’re breaking from our usual formatting this week because there was a once-in-a-generation collapse of one of the biggest banks in the country. To get this in your inbox, subscribe here. Welcome to Startups Weekly, a nuanced take on this week’s startup news and trends by Senior Reporter and Equity co-host Natasha Mascarenhas.
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