The Silicon Valley Bank Used by Big Companies Failed!

The Federal Deposit Insurance Corporation of the USA is preferred by the majority of US entrepreneurs. To Silicon Valley Bank (SVB) announced the appointment of a trustee. The bank was closed until next Monday and operations were halted.

Naturally, this situation caused a great panic among investors and entrepreneurs. Some ‘Get your money out of there‘ while some call ‘If you withdraw your money, we will all go bankrupt.‘ He said to remain calm. If you wish, let’s go down to the depth of the event together.

What is Silicon Valley Bank, what features does it have? Let’s explain it first:

SVB is the publicly traded bank located in Santa Clara, California, the heart of Silicon Valley. It is federally insured, meaning if it fails to pay its depositors, can get some money from the government.

According to its website, SVB is venture-backed in the United States. works with almost half of start-ups and its clients include 44% of venture-backed technology and healthcare companies that go public, including Pinterest, Etsy, and ZipRecruiter.

At the end of last December, Silicon Valley Bank, approximately He had total assets of $209 billion and this is a federally insured bank in US history after the Washington Mutual collapsed during the 2008 financial crisis. became the second largest bankruptcy.

So what’s the current thing? Why did Silicon Valley Bank go bankrupt?

The SVB holds a large number of Treasury and other government securities, accounting for more than half of its assets. As interest rates rose, these bonds became worthless. and the bank had to recoup the losses.

SVB shares, the bank’s Sold $21 billion in assets and on Thursday after it was announced that it plans to sell $2.25 billion worth of shares to raise more money. 60% depreciated. Explanation, encouraged start-ups to withdraw their money and caused panic among tech investors and company founders.

However, some companies called for calm and ‘If SVB goes down we all go down, don’t withdraw your money‘ they expressed their opinion. Trading in SVB shares was halted after the sharp drop in equities and regulators shut down the bank. Closed until Monday.

In summary, this is the case, friends: Entrepreneurs are worried, they want to withdraw their money. Investors, on the other hand, say that it is necessary to remain calm. What are you thinking? Please do not forget to share your thoughts with us in the comments.