Silicon Valley Bank is no more. The FDIC seized the assets of the bank, a fixture of the VC world and a prolific lender to the tech and life sciences sectors, on Friday, marking the largest bank failure since the height of the 2008 financial crisis.
Silicon Valley’s clubby world of venture capital investors and entrepreneurs plunged into panic on Thursday amid fast-spreading reports of financial trouble at one of the startup industry’s most important banks.
SVB announced a day earlier that it was selling off securities and seeking to raise billions in a public share sale to cover steep losses on its balance sheet. Shares of Silicon Valley Bank crashed by roughly 60% in regular trading on Thursday, while the bank’s tech clients scrambled to figure out whether to withdraw their deposits, sparking concerns of an old-fashioned bank run.
Less than 24 hours later, bank regulators stepped in to take control, and investors and founders alike are scrambling to figure out the best next move.
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