Since the collapse of Silicon Valley Bank a week ago, hope is starting to emerge in the tech industry that some version of it may survive, even under

Silicon Valley Bank is dead, long live SVB?

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2023-03-18 20:00:08

Since the collapse of Silicon Valley Bank a week ago, hope is starting to emerge in the tech industry that some version of it may survive, even under new ownership.

On LinkedIn, employees at SVB posted optimistic attestations that the bank is still operating, more or less the same way it was before, under its new structure. The rosy outlook that it may live on could be unrealistic given the bank’s reputational hit but it shows how much the lender became ingrained in the industry.

The Federal Deposit Insurance Corp. took over the bank last week and is in the process of trying to sell it. Initially, the agency asked SVB staff to stay on for 45 days, receiving 1.5 times their salary, to help continue operations as the lender is sold.

Now employees are hoping that the new entity, Silicon Valley Bridge Bank, could eventually survive as a reincarnated version of the original bank, with many of the same people continuing their relationships with venture capitalists and entrepreneurs.

“VCs are beginning to recognize this value and conversations are shifting to focus on preservation of an ecosystem and how we can realistically come together as a community to make that happen,” wrote Jennifer Morton, a vice president at the bank.