Silicon Valley Bank collapse: More than 400 VC funds issue statement supporting SVB

Synopsis The VC firms that co-signed the statement include Accel, Y Combinator, Sequoia Capital, General Catalyst and Matrix Partners, among others. ETtech More than 400 venture capital firms have issued a joint statement in support of the recently collapsed California-based Silicon Valley Bank (SVB), a major lender for startups globally. Hemant Taneja, CEO of VC firm General Catalyst tweeted and informed about the development, Sunday.

“Sunday: In last 36 hrs, 400+ VC firms w/ trillions in AUM signed on to support @SVB_Financial . Role in global ecosystem is critical for our industry/world to continue responsible innovation & supporting vibrant economy. More tk; support not stopping here” Taneja’s tweet read.

Sunday: In last 36 hrs, 400+ VC firms w/ trillions in AUM signed on to support @SVB_Financial. Role in global ecosy… https://t. co/MC9vdr13l6 — Hemant Taneja (@htaneja) 1678634166000 “The events that unfolded over the past 48 hours have been deeply disappointing and concerning.

In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them,” the statement read. The statement also acknowledged SVB’s role in serving startups globally. The bank had been operational for forty years, since 1983.

The VC firms that co-signed the statement include Accel , Y Combinator , Sequoia Capital , General Catalyst and Matrix Partners , among others. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories On Wednesday, the SVB Financial Group announced that it was raising $2. 25 billion in a share sale, in addition to having sold securities worth $21 billion from its portfolio.

The bank also said it booked an after-tax loss of $1. 8 billion on the sale of these investments. This led to solvency fears, sparking the stock crash and scaring customers into pulling out deposits.

On Friday, a California regulator shut Silicon Valley Bank and appointed the FDIC as receiver. The bank had $209 billion in assets and about $175. 4 billion in deposits as of December 2022.

The main office and all branches of it will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to a statement from the FDIC. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Sunday, 12 Mar, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Bottom Line Deep Dive More Investors, Fintech Cos Help Out Cash-crunched Startups Top venture investors as well as larger fintech firms such as Razorpay are among those stepping up to provide emergency services to small and mid-stage startups roiled by the abrupt closure of industry lender Silicon Valley Bank in the US on Friday.

India, Oz likely to Wrap Up $100-B Trade Pact by Dec India and Australia pledged to conclude a comprehensive trade deal by the end of 2023, eyeing $100 billion in bilateral commerce that will seek to deepen engagement in areas such as critical minerals. Direct Tax Mopup Surges 22. 6% India has collected ₹16.

68 lakh crore in gross direct tax till March 10 in the ongoing fiscal year, a rise of 22. 6% over the year-ago period, shows data released on Saturday. Net of refunds, the collection was ₹13.

73 lakh crore, 16. 8% higher. Read More News on silicon valley bank y combinator svb financial group sequoia capital general catalyst and matrix partners fdic accel Stay on top of technology and startup news that matters.

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