Silicon Valley Bank, the 16th largest market in the US, was closed by the US banking regulators last week due to a bank run worth $42 billion
SVB Capital, Silicon Valley Bank’s (SVB) venture capital unit, had reportedly invested $234 million in Sequoia Capital by May 2022. Apart from Sequoia, SVB Capital had injected in other venture capital firms like Ribbit Capital and Andreessen Horowitz from 2018 to 2022.
Last year, SVB Capital raised $2 billion to support other VC firms. The venture capital unit of the now collapsed bank looks after funds worth $9.5 billion, US based publication The Information reported. Since 1999, SVB Capital has raised close to $7 billion for VC firms.
Silicon Valley Bank, the 16th largest market in the US, was closed by the US banking regulators last week due to a bank run worth $42 billion. The SVB crisis has engulfed the US banking sector in a state of panic, although milder when compared to the 2008 financial crisis.
With billions trapped in deposits, the SVB debacle caused some serious problems to start-ups and tech companies. These companies are struggling to pay its workers and are worried that they might have to lay-off employees or put their ongoing projects on hold. Before SVB collapsed, it had assets worth $209 billion and deposits worth $175 billion.
US President Joe Biden on Sunday made a statement saying the government will take action against those responsible for the collapse. Following the SVB collapse, New York based Signature Bank also faced the similar problem of bank run which ultimately led to its closure by the US bank authorities.