SVB's venture unit had invested $234 mn Sequoia Capital through 2 funds : Report
1 min read 16 Mar 2023, 08:49 AM ISTSVB Capital is the venture capital arm of the failed Silicon Valley Bank. The VC has stakes in many of Silicon Valley's top-tier venture firms, including Sequoia Capital, Ribbit Capital, Andreessen, according to a media report
PremiumSilicon Valley Bank’s fall last week was the biggest US bank failure in more than a decade. The company’s venture capital arm unit manages $9.5 billion with stakes in Andreessen, Sequoia, The Information reported.
SVB Capital invested in Sequoia Capital, Ribbit Capital, Andreessen from 2018 to 2022, according to a presentation SVB shared with prospective investors last year, as per the report. As of May 2022, SVB Capital invested $234 million in Sequoia Capital, the report further added.
In a bid to back other VC funds, SVB Capital raised nearly $2 billion in 2022. For the most part, its focus has been investing in VC firms like Sequoia and Andreessen Horowitz.
US authorities took extraordinary measures to shore up confidence in the financial system, introducing a new backstop for banks.
Led by Silicon Valley Bank veteran John China, SVB Capital operates a range of funds. It has raised nearly $7 billion for venture fund investments since 1999.
The fiasco led to $42 billion of deposit outflows in a day and escalated worries of a contagion across financial markets, with Californian regulators later shutting down SVB — a subsidiary of the defunct SVB Financial Services Group.
Earlier, Bloomberg had reported that Apollo Global Management Inc , Blackstone Inc and KKR & Co Inc have expressed interest in a book of loans held by Silicon Valley Bank (SVB).
