“I personally stick with SVB.” Prominent figures in technology pledge support to the bank | CNN Business

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After a roller-coaster week for Silicon Valley Bank customers, some prominent voices in the tech world are now publicly saying they’ll keep their money with the embattled lender — and they are urge others to do the same.

“As venture capitalists and clients of SVB, we recommend that our portfolio companies retain or return 50% of their total capital with SVB,” read a joint statement this week from a coalition of large venture capital firms that included Lightspeed Venture Partners, Mayfield Fund and Upfront Ventures. “We believe SVB is now one of the safest and most secure banks in the country.”

The public display of support follows the bank’s sudden collapse on Friday, an exciting weekend for startup executives who don’t know if they’ll be able to pay payroll, and then the federal government’s announcement on Sunday that it would step in to guarantee it . all depositors will be integral. It also comes after the regional bank saga sent shockwaves through global financial markets.

Villi Iltchev, partner at Two Sigma Ventures he tweeted On Tuesday that he had spoken with an executive who planned to return his money to the bank because “it is now the safest bank in the US” Iltchev added: “I personally stay with SVB as my main bank where I get my direct deposit.”

The public support comes after some venture capitalists were previously accused of helping to fuel the original online panic that led to a run on the bank and led to its collapse. The push to continue doing business with Silicon Valley also highlights the unique relationship between the technology lender and the startup community, and their mutual dependence on each other.

The bank has worked with nearly half of all venture-backed technology and healthcare companies in the United States. Its collapse only risks adding to a difficult season for the tech industry as venture funding falls, interest rates rise and broader macroeconomic uncertainty has meant less funding for ambitious, money-losing projects that have come out of Silicon Valley over the past decade. .

But not everyone shares the desire to remain loyal to the bank after its implosion. In response to the joint statement from the group of venture capital firms urging people to continue trading with Silicon Valley Bank, a CEO of startups. answered on Twitter, “Honest question: Why would I do that after being put through one of the worst 48 hours of my life?”

A handful of the largest U.S. banks, including Bank of America, Wells Fargo and Citigroup, have seen significant increases in deposits since Silicon Valley Bank ran into trouble last week, people familiar with the matter told CNN . And several business leaders have already told CNN they have scrambled to set up bank accounts elsewhere after last week’s events, with one saying, “I don’t want to do this again.”

Even so, statements of support from venture capitalists echo some of the bank’s own messages.

“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits at Silicon Valley Bridge Bank and by transferring deposits left over the last few days.” Silicon Valley Bank recently said. – appointed CEO Tim Mayopoulos wrote in a note to clients on Tuesday.

Mayopoulos also stressed that the Biden administration’s announcement that all deposits are fully protected by the Federal Deposit Insurance Corporation, “effectively means that the deposits held at SVB are among the safest of any bank or institution of the country”.