{"id":75321,"date":"2023-03-10T11:06:07","date_gmt":"2023-03-10T09:06:07","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75321"},"modified":"2025-09-10T10:56:48","modified_gmt":"2025-09-10T07:56:48","slug":"venture-capital-investors-distance-themselves-from-silicon-valley-bank-amid-liquidity-concerns","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/venture-capital-investors-distance-themselves-from-silicon-valley-bank-amid-liquidity-concerns\/","title":{"rendered":"Venture-capital investors distance themselves from Silicon Valley Bank amid liquidity concerns"},"content":{"rendered":"

Five venture-capital firms focused on digital assets urged their portfolio companies to withdraw funds from Silicon Valley Bank (SVB). The Block<\/a> reports.<\/p>\n

SVB shares fell more than 60% on March 9, and its market capitalisation declined by $10 billion. This followed the bank’s announcement that it would place nearly all of its securities for sale at $1.75 billion. In addition, the venture firm General Atlantic bought a stake in the bank for $500 million.<\/p>\n

\"Snimok-ekrana-2023-03-10-v-11.03.18\"
Data: Yahoo Finance<\/a>.<\/figcaption><\/figure>\n

A call to withdraw funds was issued by: Mechanism Capital, Eden Block, and Pantera Capital. The other two investors are not disclosed.<\/p>\n

SVB is the preferred bank for a wide range of technology startups in the United States. The company serves more than 2,600 fintech clients.<\/p>\n

According to Bloomberg, the bank’s chief executive, Greg Becker, urged all sides to keep calm.<\/p>\n

\"Snimok-ekrana-2023-03-10-v-18.22.41\"
Data: Nasdaq.<\/figcaption><\/figure>\n

According to Decrypt, this may involve a takeover of Silicon Valley Bank due to its inability to raise new capital.<\/p>\n

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“As of December 31, 2022, SVB’s total assets were about $209 billion, and total deposits around $175.4 billion,” the statement said.<\/p>\n<\/blockquote>\n

The causes cited were “insufficient liquidity and insolvency,” CoinDesk writes citing the DFPI’s statement. SVB depositors will have full access to their insured deposits no later than Monday morning, 13 March.<\/p>\n<\/div>\n

The founder of Pershing Square Capital Management, Bill Ackman, said that “the collapse of SVB could destroy an important long-term driver of the economy, as VC-backed companies rely on the bank for loans and holding their operating cash”.<\/p>\n

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The failure of @SVB_Financial<\/a> could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital can\u2019t provide a solution, a highly dilutive gov\u2019t preferred bailout should be considered.<\/p>\n

\u2014 Bill Ackman (@BillAckman) March 10, 2023<\/a><\/p><\/blockquote>\n