Some have tried to combat the anti-tech perception that has spread on social media. At the weekend, Garry Tan, President start-up incubator Y Combinatorsent a message to hundreds of founders and entrepreneurs telling them to start posting “tweetstorms” to humanize the impact the Silicon Valley bank failure had on them.
The intent was to show how innovation can be stifled if investors aren’t whole, with the added benefit that more of these types of narratives would prevent some of the more outspoken “tech bro” investors and VCs from becoming the face of Silicon Valley. situation.
“By coming together as a community and showing our strength, we can have an impact on the future of startups,” Mr. Tan wrote in a letter obtained by The New York Times. He later posted an online petition government with a petition to “save innovation in the American economy,” signed by more than 5,000 CEOs representing nearly half a million employees.
More than 600 venture capital firms also came together on Saturday and Sunday to sign a declaration, hosted by General Catalyst, expressing support for Silicon Valley Bank and disappointment at its failure. They pledged to encourage their portfolio companies to resume banking with Silicon Valley Bank if the bank is sold.
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Many tech start-ups entered Silicon Valley Bank because it specialized in lending money to risky young companies, something few banks offered. By its own admission, the bank provided banking services to nearly half of all technology and life-science companies in the United States, and was also the bank for more than 2,500 venture capital firms.
This gave him a huge footprint in the fledgling industry. In a letter to investors over the weekend seen by The Times, Andreessen Horowitz, one of the top venture firms, said about half of the startups it invested in had banking relationships with Silicon Valley Bank. A spokeswoman for the company declined to comment.
Mr. Fonseka, a venture capitalist, predicted that the weekend’s events would create a lasting change in the way start-ups manage their money. Some tech companies have even considered creating a technology product to help businesses manage money across multiple bank accounts, he said.
