SVB's CEO Gregory Becker has been reportedly calling clients to assure them their money is safe, after the bank’s shares dropped 60 percent during a share sale.
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However, investors in SVB's stock fretted that the capital raise would be sufficient given the deteriorating fortunes of many technology start-ups that the bank serves. The company's stock collapsed to its lowest level since 2016, and its shares slid another 26 percent in extended trade after the market closed.
It’s hard to build a business. My sympathies are with Silvergate and SVB, both of which served many customers through good times and bad.I hope SVB pulls through. And that we can eventually build a system that isn’t subject to the vicissitudes of fractional reserve banking.— Balaji (@balajis) March 10, 2023
Reuters reported that SVB's CEO Gregory Becker has been calling clients to assure them their money with the bank is safe, citing sources.
Since the collapse began, some start-ups have been advising their founders to pull out their money from SVB as a precautionary measure. As per the report, one of them is Peter Thiel's Founders Fund.
Social media has been abuzz as the news broke. One user said "if SVB fails, it could be a Lehman moment for the startup world."
Most people don't realize how crucial Silicon Valley Bank is.Billions of dollars in venture debt. Untold amounts of warrants and convertible notes in early-stage firms.If SVB fails, this could be the Lehman moment for the startup world. pic.twitter.com/otgIQtGOMx— Peruvian Bull (@peruvian_bull) March 10, 2023
Another user prayed for it to pull through and called it a ‘Sad day for tech’.
I am really hoping Silicon Valley Bank pulls through this crisis. They have been a great partner to the tech ecosystem in 100 different ways. It’s actually a sad day for tech.— Bilal Zuberi (@bznotes) March 9, 2023
While another commented that “We got ourselves a bank run” referring to the large group of investors pulling their money from the bank.
PETER THIEL’S FOUNDERS FUND ADVISES COMPANIES TO WITHDRAW MONEY FROM SILICON VALLEY BANK - Bloomberg$SIVB -60.4% today, and another -17% after hours$169b in deposits, we got ourselves a bank run— Dylan LeClair 🟠 (@DylanLeClair_) March 9, 2023
A user pointed out that SVB is three times the size of FTX and its collapse will be “the 2nd largest bank failure in US history.”
Silicon Valley Bank is on the brink of collapse and may experience a bank run. CEO tries to calm investors.It would be the 2nd largest bank failure in US history, 3X the size of FTX.How could this happen? They were trying to degen for a < 2% yield. pic.twitter.com/wRUrbvivsa— Nick Ford (@CryptoWithNick) March 10, 2023