Venture capital firms and startups that withdrew deposits after the collapse of Silicon Valley Bank are returning their deposits to the bank after receiving assurances from FDIC that all deposits would be covered.
Over the past week, 650 VC firms pledged to support the bank and continue using its services going forward. Neobank startup Brex announced it would return $200M to its SVB bank accounts.
- Prominent VCs General Catalyst, Bessemer, Greylock, Lightspeed, and others asked their portfolio startups to return at least 50% of their total capital to the bank.
- Some VCs advised startups to distribute their funding among two or three accounts in addition to SVB.
- Early-stage VC fund 50 Years moved 90% of its funds, totaling over $17M, back into the Silicon Valley Bridge Bank's accounts.
- According to Forbes, the primary goal behind bringing back customer capital was to find a buyer for the bank.
- SVB held customer deposits worth $175B in 2022.
