Silicon Valley Bank, the largest lender to startups, has “burst” in the U.S. The bankruptcy of the financial institution greatly affected global markets, and entrepreneurs could lose billions of dollars, writes The New York Times.
Based in Santa Clara, California, the bank was founded in 1983 and was immediately involved in the tech ecosystem, providing banking services to nearly half of all venture-backed tech companies in the United States.
Silicon Valley Bank was the bank of choice for more than 2,500 venture capital firms. By the end of 2022, Silicon Valley Bank had about 209 billion assets and more than $175 billion in total deposits.
The Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank’s $175 billion in customer deposits on March 10. Deposits up to $250,000 were insured by the FDIC, but customers were not told when they would be given access to the money.
Billionaire Elon Musk has now said he is willing to consider options to buy Silicon Valley Bank (SVB), whose bankruptcy was the largest in the U.S. since the 2008 crisis.