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Over 100 venture capital and investment companies have reportedly signed a statement in favor of the collapsed Silicon Valley Bank, which was once owned by SVB Financial Group SIVB.
What Happened: As part of mounting industry calls to contain the impact of Silicon Valley Bank’s collapse, about 125 venture firms, including Sequoia Capital, signed the statement, Bloomberg reports, citing a person familiar with the matter.
See Also: Silicon Valley Bank Employees Offered 45 Days Of Employment At 1.5 Times Pay Following Collapse
Spearheaded by venture capital firm General Catalyst, the statement, which CEO Hemant Taneja shared on Twitter on Saturday, calls the bank’s shutdown and subsequent takeover by the FDIC “deeply disappointing and concerning.”
“Silicon Valley Bank has been a trusted and long-time partner to the venture capital industry and our founders. 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 US,” the statement reads.
“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,” it further says.
Why It’s Important: In the aftermath of SVB’s collapse, many tech leaders have contacted lawmakers and regulators, urging them to prioritize companies and jobs that are at risk as a result of the crisis. However, Treasury Secretary Janet Yellen suggested in a recent interview that a bailout was out of the question.
Read Next: Bill Ackman Says Government Has 48 Hours To Fix The SVB Mess: ‘A Soon-To-Be-Irreversible Mistake’
Photo: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.