Over 100 VCs, investors voice solidarity with Silicon Valley Bank

As the 40-year-old banking institution, Silicon Valley Bank (SVB), winds down its operations, numerous venture capitalists (VCs) and investors banded together and decided to cushion the shock should the bank “be purchased and adequately capitalized. ”

Approximately 125 VCs and investors signed a statement supporting SVB to limit the consequences of the bank's collapse and the subsequent impact on technology companies. Venture firms included Sequoia Capital and General Catalyst.

Several VC leaders met today to discuss the consequences of the fall of SVB. This is a joint statement from all of us. @Accel @altcap @BCapitalGroup @generalcatalyst @eladgil @GreylockVC @khoslaventures @kleinerperkins @lightspeedvp @FondoMayfield @Red point @RibbitCapital @upfrontvc pic.twitter.com/7OtHq0zwT1

— Hemant Taneja (@htaneja) March 11, 2023

A group of investors from high-profile firms gathered over Zoom for a series of meetings, a Bloomberg revealed. report. Hemant Taneja, CEO of General Catalyst, initially disclosed the joint statement from several venture capitalists, showing their support for the bank. He said:

"Should SVB be purchased and properly capitalized, we would strongly support it and encourage our portfolio companies to resume banking relationships with them."

In parallel, the startup incubator Y Combinator published a petition demanding that "depositors be recovered and that it be regulated to avoid this catastrophe."

Now they have signed about 2800 founders who have more than 180,000 employees.

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 US Treasury Secretary Janet Yellen and Federal Deposit Insurance Corporation President Martin Gruenberg, garnered signatures of about 2,800 founders and 180,000 employees at the time of writing.

“Everyone understands that we have a role to play in trying to defuse the situation,” Taneja told Bloomberg. Questioning this drive to save SVB, however, prominent Indian businessman Ashneer Grover reminded Taneja that banks are not saved by passing UN-type bureaucratic joint resolutions, criticizing the mentality of pouring money into a problem with the hope to solve it. fixing it "Requires intention and balls of steel!" He concluded.

Related: Silicon Valley Bank's UK branch was closed by the Bank of England

Hours after USD currency (USDC) lost its peg to the US dollar, unconfirmed reports of a resolution momentarily brought token prices to almost $1.

Although the reports are currently unverified, multiple sources confirm that many different paths to resolution are being worked out and that depositors will get "at least 50% of their deposits" back in the coming week.