Friday, March 10, 2023

Venture Banking Market Roiled As VCs Advise Move Out Of SVB

In a sign of the jittery startup investment market, some venture capital funds have apparently advised some portfolio companies to move their funds out of Silicon Valley Bank, which caused a trading halt on the bank's stock this morning. According to TechCrunch, the recommendations by those VCs may have triggered a bank run. Local venture investor Mark Suster posted a long thread in Twitter in defense of the bank. According to CNBC, the bank apparently is looking for a buyer. (Editor's note: SVB previously had been a long term sponsor of this publication, but has not been a sponsor for several years)