Silicon Valley Bank’s collapse laid bare divisions in the usually clubby venture capital community, with some investors blaming their counterparts for igniting a panic that brought down a beloved startup business partner.
In the chaotic early hours of the bank run on SVB, many VCs advised their companies to yank their deposits from the troubled lender. In the aftermath Friday, other investors publicly lambasted their industry for its role fueling the flames. “I’d like to formally thank my peers in the venture community whose stellar leadership over the past 48 hours triggered a run on deposits at Silicon Valley Bank, ultimately toppling one of the most important institutions in our ecosystem,” tweeted seed investor Brad Svrluga.
