Silicon Valley Bank Struggles
Silicon Valley Bank comes down, Fortune notes in a newsletter.
Silicon Valley Bank, a major lender in the private market ecosystem, has sparked panic among venture capitalists and entrepreneurs by revealing plans to sell securities and raise billions in a public share sale to offset significant losses on its balance sheet. Following this announcement, the bank's shares plummeted by approximately 60%, raising concerns of a bank run. Venture capitalists are advising their tech clients on where to move their money, with some recommending withdrawing deposits and relocating 6-12 months of cash burn to a more secure location. Despite the bank's claims of being well-capitalized and possessing a high-quality, liquid balance sheet, signs of trouble are emerging, such as clients struggling to log into the bank's website and wire transfers potentially being delayed