Hundreds of venture capital firms vow to work with Silicon Valley Bank again if new owner is found

cnbc.com:

More than three hundred venture capital firms have signed a joint statement vowing to do business again with Silicon Valley Bank if it is «purchased and appropriately capitalized,» after the financial institution failed on Friday.

Regulators shuttered SVB and seized its deposits on Friday following a run on the bank on Thursday.

Preceding the bank's failure, SVB CEO Greg Becker had announced a sudden need to raise $2.25 billion to shore up the financial institution's balance sheet overnight on Wednesday. A dramatic wave of deposit withdrawals followed on Thursday.

Shares in the bank plummeted and triggered a trading halt on Friday before the California state regulators took over.

The SVB failure marks the largest in U.S. banking since the 2008 financial crisis and the second-largest ever.

Some venture firms withdrew their own money and instructed their portfolio companies to withdraw their deposits from SVB before the run. Reportedly Founders Fund, USV and Coatue were among those to do so.

Other venture investors lamented that directives from influential firms, even if prudent in a way, contributed to the run on a bank that had been a long-trusted financial partner to tech startups and firms that invest in them for decades.

The Federal Deposit Insurance Corporation (FDIC) will cover up to $250,000 per depositor and may be able to begin paying depositors under that cap as early as Monday. It remains to be seen, however, what portion of the deposits on SVB's balance sheet will see a full or partial recovery, and whether there is an immediate buyer poised to acquire the bank's operations.

In 2008, JPMorgan Chase acquired Washington Mutual Bank in a transaction facilitated by the FDIC.

As CNBC has reported, big names in tech