As the 40-year-old Silicon Valley Bank (SVB) winds down, numerous investors and venture capitalists (VCs) joined hands and decided to cushion the shock should the bank “be bought and properly capitalized.” “.
Approximately 125 venture capital firms and investors signed a statement of support for SVB to limit the consequences of the bank’s bankruptcy and the consequent impact on technology companies. Venture capital firms include Sequoia Capital and General Catalyst.
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
A group of high-profile company investors came together via Zoom for a series of meetings, a Bloomberg report revealed. Hemant Taneja, CEO of General Catalyst, initially disclosed the joint statement from various VCs, showing his support for the bank. He said like this:
“Should SVB be acquired and adequately capitalized, we would strongly support it and encourage our portfolio companies to resume banking relationships with them.”
In parallel, the startup incubator Y Combinator published a petition demanding “that depositors be compensated and that it be regulated to avoid this catastrophe.”
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
According to Y Combinator CEO Gary Tan, the petition – addressed to regulators including US Treasury Secretary Janet Yellen and Federal Deposit Insurance Corporation President Martin Gruenberg – had the signatures of 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 defuse the situation,” Taneja told Bloomberg. However, Ashneer Grover, a prominent Indian businessman, reminded Taneja that banks are not saved by passing UN-style bureaucratic joint resolutions. “It takes intention and balls of steel,” he concluded.
Hours after USD Coin (USDC) lost its peg to the US dollar, unconfirmed reports of a resolution momentarily returned token prices to nearly $1.
Although the reports are currently unverified, multiple sources confirm that different resolution pathways are in the works and that depositors will recover “at least 50% of their deposits” within the next week.
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