At Silicon Valley Bank (SVB), a 40-year-old banking giant, several venture capitalists (VCs) and investors joined hands and decided to “buy and properly capitalize the bank to reduce its impact.”
About 125 VCs and investors signed a statement supporting SVB to limit the bank’s collapse and subsequent impact on tech companies. Venture firms include Sequoia Capital and General Catalyst.
A group of investors for high-profile companies met over Zoom in a series of meetings, according to a Bloomberg report Report. Hemant Taneja, CEO of General Catalyst, had earlier revealed a joint statement from several VCs showing support for the bank. It says:
“Should SVB be acquired and properly capitalized, we will strongly support our portfolio companies in re-establishing their banking relationships.”
Parallel to this, Startup Incubator Y Combinator released a petition calling for “a complete overhaul of the depository and regulation to prevent this disaster”.
According to Y Combinator CEO Gary Tan, the petition — addressed to regulators including U.S. Treasury Secretary Janet Yellen and Federal Deposit Insurance Corp. Chairman Martin Grunberg — has received signatures from about 2,800 founders and 180,000 employees at the time of writing.
“Everyone understands that we have a role to play in trying to calm the situation,” Taneja told Bloomberg. However, rejecting this push to save SVB, prominent Indian businessman Ashneer Grover reminded Taneja that banks will not be saved by passing bureaucratic, United Nations joint resolutions – taking the attitude of pouring money into a problem in the hope. Fixes it. “It takes aim and balls of steel!” He finished.
Related: The Bank of England has closed the UK branch of Silicon Valley Bank
Hours after the USD currency (USDC) lost its value against the US dollar, unconfirmed reports of a resolution briefly brought the token’s price to nearly $1.
Although the reports are currently unverified, multiple sources confirm that various paths to resolution are in the works and that depositors will get back “at least 50% of their deposits” in the coming week.