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Hundreds of Silicon Valley venture-capital firms, including heavyweights such as Sequoia Capital and RRE Ventures, have pledged to work again with Silicon Valley Bank if a new owner is found.
“In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them,” the VCs said in an open letter.
“Silicon Valley Bank has been a trusted and long-time partner to the venture capital industry and our founders,” it said. “For forty years, it has been an important platform that played a pivotal role in serving the startup community and supporting the innovation economy in the U.S.”
Banking regulators shut down Silicon Valley Bank on Friday after the bank’s parent SVB Financial Group tried to raise capital last week, triggering a run. It was the second-largest bank failure in U.S. history after the collapse of Washington Mutual in 2008.
Regulators said Monday that it has rolled Silicon Valley Bank’s insured and uninsured deposits to a newly created full-service FDIC-operated bridge bank, seeking to protect all customers.
Stocks of regional banks such as First Republic Bank
FRC,
Western Alliance Bancorp
WAL,
PacWest Bancorp
PACW,
and Zions Bancorp
ZION,
were falling Monday despite the emergency measures.
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