RESEARCH TRIANGLE PARK – David Gardner, one of the most active venture capital investors in North Carolina, says his firm Cofoundrers Capital is joining the exodus of account holders at Silicon Valley Bank – up until Thursday a huge financial pillar to the nation’s startup and tech economy.
“We are pulling money out,” Gardner tells WRAL TechWire. His fund recently raised $50 million in investment capital. “I hate to do this because that is what actually causes a bank to fail but a CEOs job is first to protect his or her venture not the bank. ”
SVB’s future unraveled Thursday, its stock plummeting 60% when news broke that it was facing financial difficulty and attempting to raise capital. Trading in the bank’s stock was halted Friday morning before the markets opened after a further huge decline in stock value.
Top Triangle investor says several clients likely to withdraw funds at Silicon Valley Bank
Gardner says he reached out to the some 30 portfolio members of the Cofounders stable with advice to move on to another bank.
Silicon Valley Bank woes rattle entrepreneurs; stock plummets again, trading stopped