Silicon Valley Bank's Abrupt Closure Leaves Venture Capitalists And Founders Scrambling

(Photo via Smith Collection/Gado/Getty Images).Getty Images Investors told Forbes they’re now focused on damage control such as ensuring portfolio startups can make payroll with the bank’s uninsured deposits now frozen. This is a developing story that will keep receiving updates. Last updated 3/10 at 6pm. On Friday, Silicon Valley Bank’s rich 40-year history came to an abrupt, ignominious end as regulators closed the bank and appointed the Federal Deposit Insurance Corporation as its receiver. And for the startups and investors that SVB has financed and served as a bank – spanning the entire venture capital-backed ecosystem – it’s raised new questions about when deposits and financing will be returned, if at all. For the U.S. startup ecosystem, the news is an end-of-an-era moment that follows several days of frenzied communications and speculation that played out over Twitter, firm emails to founders, and investor and entrepreneur group chats. In talks with more than 10 venture capital investors on Thursday and Friday, Forbes heard of a chaotic scene in the past several days since SVB revealed its financial concerns and proposed a plan of action on Wednesday that spooked many in the industry. (A call by SVB CEO Greg Becker with some
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