Over 100 VCs, investors voice solidarity with Silicon Valley Bank

As the 40-year-old banking institution, Silicon Valley Bank (SVB), winds down operation, galore task capitalists and investors joined hands and decided to cushion the interaction successful lawsuit the slope “were to beryllium purchased and appropriately capitalized.”

Approximately 125 VCs and investors signed a connection supporting SVB arsenic a mode to bounds the fallout of the bank’s illness and consequent extinction of tech companies. The task firms included Sequoia Capital and General Catalyst.

Several VC leaders met contiguous to sermon the aftermath of SVB’s downfall. This is simply a associated connection from each 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

A radical of investors for high-profile firms met implicit Zoom successful a bid of meetings, disclosed a Bloomberg report. Hemant Taneja, the CEO of General Catalyst, initially revealed the associated connection from respective VCs, showing enactment for the bank. It read:

“In the lawsuit that SVB were to beryllium purchased and appropriately capitalized, we would beryllium powerfully supportive and promote our portfolio companies to resume their banking relationships with them.”

In parallel, startup incubator Y Combinator, too, posted a petition demanding “depositors to beryllium made whole, and for regularisation to forestall this catastrophe.”

— Garry Tan 陈嘉兴 (@garrytan) March 12, 2023

According to Y Combinator CEO Gary Tan, the petition — directed toward regulators including Secretary Janet Yellen and Chairman Martin Gruenberg — scored signatures from astir 2800 founders and 180,000 employees astatine the clip of writing.

“Everyone understands that we person a relation to play successful trying to calm the situation,” Taneja told Bloomberg. However, disputing this thrust to prevention SVB, salient Indian entrepreneur Ashneer Grover reminded Taneja that banks don’t get saved by passing bureaucratic, UN-type associated resolutions — taking a excavation astatine the emblematic VC mindset of pouring wealth to hole a problem. “It requires intent and balls of steel!” helium concluded.

Related: Silicon Valley Bank's UK subdivision unopen down by Bank of England

Hours aft USD Coin (USDC) mislaid its peg to the US dollar, unconfirmed reports astir a solution momentarily brought backmost the token’s prices to astir $1.

7-day illustration of USDC/USD price. Source: CoinMarketCap

Although the reports are presently unverified, aggregate sources corroborate that galore antithetic tracks to solution are being worked connected and that depositors volition get backmost "at slightest 50% of their deposits" successful the coming week.