SVB panic spreads as European VCs urge founders to pull funds

CEO of SVB Financial Greg Becker.This story is available exclusively to Insider subscribers.At least 10 European VC funds have told their founders to pull funds out of Silicon Valley Bank.The tech lender was plunged into crisis after a $21 billion firesale of its bond portfolio.

Another UK venture capital partner said that they"loved SVB" but said they were unable to"advise our portcos to take a risk with their cash." SVB's parent firm was plunged into crisis after revealing late Wednesday that it had incurred a $1.8 billion loss on a $21 billion firesale of its bond portfolio and that it was launching a $2.25 billion stock sale to shore up its capital position. amid concerns among investors and founders about the safety of their cash.

Another investor described the situation at SVB as"crazy and sad" while another suggested there had been a"meltdown" among general counsels looking to shift funds.

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