To minimize the effects of the bank’s failure and the ensuing impact on tech companies, some 125 venture capitalists and investors signed a declaration supporting Silicon Valley Bank.
Several venture capitalists (VCs) and investors came together when Silicon Valley Bank (SVB), a 40-year-old banking institution, began to wind down operations to mitigate the damage if the bank “were to be purchased and appropriately capitalized.”
About 125 venture capitalists and investors signed a declaration in support of SVB to lessen the effects of the bank’s failure and the following impact on IT businesses. Both Sequoia Capital and General Catalyst were venture capital firms.
If you want to know more, here’s the tweet in its full length:
Several VC leaders met today to discuss the aftermath of SVB’s downfall. This is a joint statement from all 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
According to a Bloomberg story, a group of investors for well-known companies had a series of meetings over Zoom. The combined statement from various VCs endorsing the bank was first made public by General Catalyst CEO Hemant Taneja. It said:
“In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume their banking relationships with them.”
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A petition requesting “depositors to be made whole, and for regulation to prevent this catastrophe” was simultaneously posted by startup accelerator Y Combinator.
Check out the full tweet below for more information-
Now about 2800 founders who have over 180,000 employees have signed.
About 44% of them are based outside of California.
— Garry Tan 陈嘉兴 (@garrytan) March 12, 2023
Almost 2,800 entrepreneurs and 180,000 workers have signed the petition, according to Y Combinator CEO Gary Tan, which is addressed to regulators including Martin Gruenberg, head of the Federal Deposit Insurance Corporation, and Janet Yellen, secretary of the US Treasury.
“Everyone understands that we have a role to play in trying to calm the situation,” Taneja told Bloomberg.
Ashneer Grover, a well-known Indian businessman, disputed this effort to preserve SVB and pointed out that banks aren’t saved by enacting cumbersome joint resolutions like those from the United Nations, mocking the approach of throwing money at a problem in the hopes that it will go away. “It requires intent and balls of steel!” he concluded.
Several sources affirm that various resolution avenues are being considered, even if the reports are currently unconfirmed, and that depositors will receive “at least 50% of their deposits” returned in the upcoming week.
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