Becker has been calling clients to assure them that their money with the bank is safe, according to two people familiar with the matter. Some startups have been advising their founders to pull out their money from SVB as a precautionary measure, the sources added.
A crucial lender for early-stage businesses, SVB is the banking partner for nearly half of U.S. venture-backed technology and healthcare companies that listed on stock markets in 2022.
“While VC (venture capital) deployment has tracked our expectations, client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted,” Becker said in a letter to investors.
The funding winter is a fallout of a relentless increase in borrowing costs by the Federal Reserve over the last year as well as elevated inflation.
At one point during trading on Thursday SVB’s stock fell almost 63%, hitting its lowest level since August 2016, after the lender slashed…
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