Some startups that banked with SVB will need to pay employees as soon as Tuesday, one noted board directors (who are frequently VCs who’ve backed the company) also carry liability for their companies to do so. The biggest question for investors and founders now, several firm leaders said: Startups making payroll next week.

In a LinkedIn post, Glen Water, head of early stage practice for Europe and the Middle East and Africa at SVB, wrote that Silicon Valley Bank UK had confirmed on Friday that it was a standalone, UK-regulated bank and was not immediately affected by the FDIC’s move.įounders, meanwhile, compared notes on their ability to withdraw funds over Signal and Telegram groups. In a press release, the California Department of Financial Protection and Innovation said that insured depositors “will have full access to their insured deposits no later than Monday morning, March 13, 2023.” Uninsured depositors – and more than 93% of the bank’s $161 billion in deposits were uninsured – were told they would get a receivership certificate for their remaining funds, to be paid out in future dividend payments as the FDIC sold off SVB’s assets. Others, who attempted to withdraw in the evening and into Friday, however, were unclear as of lunchtime Friday whether they’d get their funds anytime soon.Ī request for comment to an SVB spokesperson and an external PR representative was not immediately answered.

Many founders and VCs said that, to their knowledge, attempts to withdraw capital from SVB Wednesday and through Thursday afternoon had gone smoothly.

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