More Than 100 VCs and Investors Express Solidarity with Silicon Valley Bank2 min read
As Silicon Valley Bank (SVB), a reputable banking institution with four decades of experience in the industry, prepares to wind down its operations, a group of venture capitalists (VCs) and investors have come together to mitigate the potential impact on the tech industry. In the event that the bank is acquired and properly capitalized, these investors have pledged to lend their support to the bank and its customers.
Over 125 VCs and investors, including heavyweights like Sequoia Capital and General Catalyst, have signed a statement pledging their support to SVB. This is a crucial move as SVB has been a key player in financing tech startups, and any disruption to its operations could have far-reaching consequences for the industry.
Several VC leaders met today to discuss the aftermath of SVB’s downfall. 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
According to a recent report by Bloomberg, a group of investors representing prominent firms held a series of virtual meetings on Zoom. The CEO of General Catalyst, Hemant Taneja, first announced a joint statement from various venture capitalists expressing their backing for the bank. The statement was disclosed during the meetings.
“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 relationships with them.”
At the same time, Y Combinator, a startup incubator, shared a petition calling for the “complete compensation of depositors” and for regulatory measures to prevent similar disasters from happening in the future.
Now about 2800 founders who have over 180,000 employees have signed.
About 44% of them are based outside of California.
— Garry Tan 陈嘉兴 (@garrytan) March 12, 2023
Y Combinator CEO Gary Tan reported that approximately 2,800 founders and 180,000 employees had signed the petition at the time of writing. The petition was addressed to regulators such as United States Treasury Secretary Janet Yellen and Federal Deposit Insurance Corporation chairman Martin Gruenberg.
While acknowledging the need to calm the situation, Taneja faced criticism from prominent Indian entrepreneur Ashneer Grover, who disputed the drive to rescue SVB. Grover emphasized that passing bureaucratic resolutions akin to those of the United Nations would not save a bank, and that it required both intention and courage. “It takes intent and balls of steel!” he quipped.
Following USD Coin’s (USDC) detachment from the U.S. dollar, there were reports – unconfirmed as of now – that a solution had been found, which briefly boosted the token’s value to nearly $1.
While the accuracy of the reports remains uncertain, several sources have indicated that numerous avenues to resolve the issue are being explored, and that depositors can expect to recover “at least 50% of their deposits” in the upcoming week.