As the 40-year-old banking institution, Silicon Valley Bank (SVB), winds down operations, many venture capitalists and investors have joined hands and decided to mitigate the impact if the bank and its capital are “properly bought.”
Nearly 125 venture capitalists and investors signed a statement supporting SVB to limit the fallout from the bank’s collapse and the subsequent impact on technology companies. Venture firms included Sequoia Capital and General Catalyst.
Bloomberg revealed that a group of high-profile corporate investors met via Zoom for a series of meetings a report. Hemant Taneja, CEO of General Catalyst, initially disclosed the joint statement from several venture capitalists, showing support for the bank. is reading:
“If SVB and its capital are appropriately purchased, we will provide strong backing and encourage our portfolio companies to resume banking relationships with them.”
In parallel, the startup incubator Y Combinator published a petition calling for “depositors to unite, and for regulation to prevent this disaster.”
According to Y Combinator CEO Gary Tan, the petition — addressed to regulators including US Treasury Secretary Janet Yellen and FDIC President Martin Gruenberg — has registered signatures from nearly 2,800 founders and 180,000 employees at the time of writing.
“Everyone understands that we have a role to play in trying to de-escalate the situation,” Taneja told Bloomberg. However, disputing this impulse to bail out SVB, prominent Indian entrepreneur Ashner Grover Taneja stated that banks are not being bailed out by passing joint UN bureaucratic resolutions – bearing in mind the mentality of pouring money on a problem in hopes of fixing it. “It takes intent and balls of steel!” He finished.
Related: The Bank of England closed its Silicon Valley branch in the UK
Hours after USDC lost its peg to the US dollar, unconfirmed reports about the decision sent the token’s price back nearly $1.
Although the reports are currently unverified, multiple sources confirm that several different paths to resolve it are in the works and that depositors will get “at least 50% of their deposits back” in the next week.
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