RESEARCH TRIANGLE PARK – Word of Silicon Valley Bank’s meltdown spread like wildfire through the Triangle’s startup community on Thursday with entrepreneurs scared about what to do with their money.
Scot Wingo, leader of the very active Triangle Tweener Fund which focuses on emerging startups, was among the first to hear – and to react.
“I was alerted around noon via questions from Triangle Tweener Fund portfolio [companies] that VCs were recommending they move money out of SVB,” Wingo tells WRAL TechWire.
“Shortly thereafter we sent a note to our ~[some] 50 CEOs alerting them to the situation and offered to help them think through it.”
Silicon Valley Bank’s woes rattle entrepreneurs; stock plummets 60%
As SVB stock plummeted 60%, Wingo said “We heard from four and discussed options.”
While unable to discuss client specific information he pointed out “I believe most/all of them will transfer a material amount of their deposit from SVB to be cautious.”
So too did many other clients with funds at SVB, according to media reports.
However, getting access to money wasn’t easy – or immediate.
“Several noted that the bank’s wire/banking portal was down a substantial amount of time last night,” Wingo said.
The exodus of capital despite SVB assurances has triggered another 40% decline in SVB shares early Friday before the markets opening.
Wingo – the co-founder of ecommerce services provider ChannelAdvisor and currently CEO of Triangle vehicle maintenance startup Get Spiffy, pointed out that his company does not have any funds at SVB.
