Thiel Fund, Venture Firms Advise Companies to Pull Money From Silicon Valley Bank

Yahoo Finance | March 10, 2023

(Bloomberg) — Panic spread across the startup world as worries about the financial health of Silicon Valley Bank, a major lender to fledgling companies, prompted Peter Thiel’s Founders Fund and other prominent venture capitalists to advise portfolio businesses to withdraw their money, even as the bank’s top executive urged calm.

The turmoil followed a surprise announcement from Santa Clara, California-based SVB that it was holding a $2.25 billion share sale after a significant loss on its portfolio, which included US Treasuries and mortgage-backed securities. SVB’s stock plunged 60% on Thursday and its bonds posted record declines.

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