Silicon Valley Bridge Bank’s new CEO Tim Mayopoulos is asking customers to come back to the lender following its government takeover.
“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days,” Mayopoulos wrote in a letter to clients on Tuesday.
The former Fannie Mae leader told customers that the bank was making new loans and honoring existing credit facilities. Depositors once again have full access to their money, while both new and existing deposits are fully protected by the FDIC, he said.
“If you, your portfolio companies, or your firm moved funds within the past week, please consider moving some of them back as part of a secure deposit diversification strategy. We are also open for business for any new customers. We are actively opening new accounts of all sizes and making new loans,” Mayopoulos wrote.
The call to action comes as a whiplash for many founders and executives who had stored funds in the bank, which was taken over the by government last week after a bank run where depositors took out billions.
“The situation seems to keep changing by the day or the hour,” Perelel cofounder and co-CEO Victoria Thain Gioia tells Fast Company, saying she was unsure of what the company would do with funds that had been with SVB.
“We’re all trying to figure out what to do,” adds UserHub cofounder Patrick Rafferty.
It’s unclear how many clients will put funds back into their accounts, or continue the process of moving to other banks. Still, some seem to be moving forward.
“The way we thought about it is it’s absolutely the safest place in the world to keep your money, at least for the next 24 months, given the government backing,” Veracity CEO Allie Egan tells Fast Company. The startup had been banking with SVB since the summer of 2021, the founder said, and will continue to do so.
Several high-profile venture capitalists and investors are also urging their portfolio companies to head back to the bank. Bessemer Venture Partners, Greylock, Lightspeeds, Lux Capital, and Upfront Ventures released a joint statement on Tuesday afternoon recommending their portfolio companies either keep or return 50% of their total capital with SVB.
Eric Paley, cofounder and managing partner of Founder Collective, tells Fast Company he remains wholly confident in the bank moving forward, as it’s long been a “pillar” of the startup community. “My view is now is the time to put dollars in the bank and show support,” he says.
Better Tomorrow Ventures cofounder Sheel Mohnot also added on Twitter he was urging his portfolio companies to keep their money with SVB. “We (tech/VC’s) really need SVB & have a real chance to bring it back or find a friendly home,” he wrote, referring to the possibility of a sale.
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