In a transfer that indicators a vote of confidence in the way forward for Silicon Valley Financial institution, enterprise capital corporations have agreed to help the financial institution and encourage their portfolio firms to renew their banking relationship with SVB if the financial institution is acquired and correctly capitalized.
VCs Have Unwildering Religion in SVB
The VCs, which embrace Accel, Altimeter Capital, B Capital Group, Normal Catalyst, Gil Capital, Greylock Companions, Khosla Ventures, Kleiner Perkins, Lightspeed Enterprise Companions, Mayfield Fund, Redpoint Ventures, Ribbit Capital, and Upfront Ventures, issued a joint assertion expressing their help for the financial institution.
In accordance with Hemant Taneja, CEO of Normal Catalyst, the VCs met lately to debate the systematic danger of Silicon Valley Financial institution’s downfall and the affect it might have on the startup ecosystem. The VCs acknowledged that SVB has been a trusted long-term accomplice to the enterprise capital business, serving the startup neighborhood and supporting the innovation financial system within the U.S.
Within the assertion, the VCs said that they’d be “strongly supportive” of Silicon Valley Financial institution if it had been to be bought and appropriately capitalized, and would encourage their portfolio firms to renew banking relationships with the financial institution.
Elon Musk to Purchase Silicon Valley Financial institution
The way forward for Silicon Valley Financial institution has been the topic of hypothesis lately, with some suggesting that it may very well be acquired by a digital financial institution. Min-Liang Tan, CEO of Razer, lately instructed that Twitter ought to take into account shopping for SVB and turning it right into a digital financial institution, with Elon Musk responding that he was open to the concept.
Whereas Elon Musk has plans to introduce fee help on the social media platform with fiat help, a completely developed banking infrastructure may very well be an ideal take care of the Silicon Valley Financial institution acquisition.
Regardless of latest challenges, together with the closure of the financial institution by the California Division of Monetary Safety and Innovation and the appointment of the Federal Deposit Insurance coverage Company because the receiver, the help of those enterprise capital corporations is a optimistic signal for the way forward for Silicon Valley Financial institution and the startup ecosystem it helps.