Venture capitalists urge startups to withdraw funds from crisis-laden Silicon Valley Bank
Publishing timestamp: 2023-03-10 09:45:48
Summary
Venture capital firms are advising their portfolio companies to move their funds out of Silicon Valley Bank (SVB) to avoid the risk of being caught up in its potential failure. SVB shares plunged 60% after disclosing that it needed to shore up its capital with a $2.25 billion equity raise from investors including General Atlantic. The bank is considered the backbone of the venture capital industry in the US, and having funds frozen at SVB could be deadly for money-burning startups. VC firms on both sides of the Atlantic have been urging their portfolio companies to move money out of the embattled lender, deepening fears of a run on the tech-focused bank.
Sentiment: NEGATIVE
Keywords: venture capital, svb financial group, silvergate capital corp, banks, business news,
Source: https://www.cnbc.com/2023/03/10/vcs-urge-startups-to-withdraw-funds-from-silicon-valley-bank.html