Venture capitalists urge startups to withdraw funds from Silicon Valley Bank
Numerous VC funds are advising companies in their portfolios to move their funds out of Silicon Valley Bank to avoid the risk of being caught up in its potential failure.
In this photo illustration of the TradingView stock market chart of SVB Financial Group seen displayed on a smartphone with the SVB Financial Group logo in the background.Venture capital firms on both sides of the Atlantic have been urging their portfolio companies to move money out of embattled lenderSilicon Valley Bank shares plunged 60% Thursday after disclosing that it needed to shore up its capital with a $2.25 billion equity raise from investors including General Atlantic.
"In light of the situation with Silicon Valley Bank that we are sure all of you are watching unfold, we wanted to reach out and recommend that you move any cash deposits you may have with SVB to another banking platform," said Anna Nitschke, Pear's chief financial officer, in an email to founders obtained by CNBC.
In the tech heydays of 2020 and 2021, ultra low interest rates meant that it was much easier for startups to raise capital.
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