Venture capital firms issue an united statement in which they agree to assist Silicon Valley Bank once more, but with restrictions.
If Silicon Valley Bank is bought and adequately funded, venture capital firms agree to support and request that portfolio companies continue their banking relationship with Silicon Valley Bank.
On March 11, General Catalyst CEO Hemant Taneja revealed that executives from many venture capital firms had gathered to discuss the general danger of Silicon Valley Bank’s failure. The VCs have issued an united statement outlining the requirements for continuing to support the bank.
Among of the VCs are Accel, Altimeter Capital, B Capital Group, General Catalyst, Gil Capital, Greylock Partners, Lightspeed Venture Partners, Mayfield Fund, Redpoint Ventures, Ribbit Capital, and Upfront Ventures. The sentence reads:
“The events that unfolded over the past 48 hours have been disappointing and concerning. In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume banking relationships with them,”
The venture capitalists concur that Silicon Valley Bank (SVB) has long been a dependable partner to the venture capital sector, helping the startup community and the American innovation economy. Altimeter Capital’s founder, Brad Gerstner, said:
“Silicon Valley stands together with Founders. Continuing to innovate. Continuing to build. This will make us stronger. Nearly universal agreement with this statement well beyond those listed. Fed needs to act now to make sure depositors are 100% protected.”
Razer CEO Min-Liang Tan recommended that Twitter think about acquiring SVB and converting it into a digital bank. Curiously, Elon Musk has responded to it, adding “I’m open to the idea”.
Elon Musk intends to add fiat support for payments to the social networking platform, but the acquisition of Silicon Valley Bank might pave the way for a fully established banking system.
The Federal Deposit Insurance Corporation (FDIC) was named receiver of Silicon Valley Bank on March 10 by the California Department of Financial Protection and Innovation.
The Deposit Insurance National Bank of Santa Clara (DINB) was established by the FDIC, and on March 13 both insured and uninsured depositors would begin receiving their money back.
