some venture capital Companies, including some of the biggest names in gaming, have asked their portfolio companies to remove money from Silicon Valley Bank after the storied bank announced this morning that it intends to sell its stake in a bid for more capital. I am advising you.
Many investors fear bank crackdowns. That means enough startups are going to pull capital on his SVB. In this situation, financial institutions can be upside down in terms of demand for deposits and funds. (Bank runs are often ironic in that they can be self-fulfilling prophecies.)
Founders who raise millions of dollars in venture capital funding often put their money in SVB accounts to help people understand what’s going on. The seeming threat to that precious capital could set off a domino effect that is more fear-based than reality.update: Renowned Venture Investor Mark Suster took to Twitter to defend the bankhe said he believed in the CEO [and that their] The goal was to raise [and] Strengthen [their] Balance sheet”)
For some time, SVB has enjoyed a large market share in the startup world, providing both banking and venture financing services to emerging technology companies and their backers, but its reputation has eroded in real time. And it seems. A founder told TechCrunch today that he was asked to withdraw money from a bank by two different venture investors in two different companies. That advice doesn’t seem unique.
