Silicon Valley investors and founders express shock over SVB’s collapse

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Silicon Valley investors and founders express shock over SVB’s collapse, describe struggles to get money out

• As Silicon Valley Bank was shuttered by the FDIC on Friday, investors and companies with money locked up expressed dismay at how it went down.
  
• Many venture capitalists likened the collapse to a Twitter-led bank run, based more on unjustified fear than reality.
  
• Investors were urging their portfolio companies to allocate money to other banks so they could pay their employees on time.
  

Venture capitalists and technology executives are scrambling to make sense of and account for the potential repercussions of the sudden implosion of Silicon Valley Bank on Friday.

The Federal Deposit Insurance Corporation, or FDIC, said Friday that U.S. federal regulators shut down Silicon Valley Bank

, the premier financial institution for Silicon Valley tech startups for the past 40 years. The collapse of SVB represents the biggest banking failure since the 2008 global economic crisis.

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