It took just two days for the whole fallout on SVB Financial Group (SIVB) to go from fundraising announcement to falling into receivership, as its efforts to raise funds went into flames.
According to the Wall Street Journal or WSJ, its book-running manager Goldman Sachs (GS), had lined up a deal worth $95 per share on Thursday afternoon before SIVB fell from grace due to a classic bank run.
Its VC- and startup-focused customers lost confidence in the bank’s ability to remain solvent. Portfolio companies were also advised by VCs to flee, urging them to withdraw their funds and move away from SIVB in a hurry.
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