Venture capitalists, hedge funds, and investors were hoping to pick up stakes in startups impacted by Silicon Valley Bank's collapse on the secondary market at a heavy discount.
Their plans were thwarted when U.S. regulators guaranteed all deposits in SVB this morning.
Regulators took over Silicon Valley Bank last Friday after liquidity concerns surfaced at the bank, which caused its stock to plunge over 60% on Thursday.
- Since the fallout of the bank, private stock trading platform Hiive saw a 100% surge in the number of users.
- Hiive reported that the average bid discount for VC-backed startups widened to 57.3%, up from 51.7% in February.
HSBC acquired Silicon Valley Bank's U.K. division for £1. The Bank of England assured depositors that “all depositors’ money with SVB UK is safe and secure as a result of this transaction.”
