Shares in Silicon Valley Bank (SVB), a key lender to technology start-ups, plummeted on Thursday as investors moved to withdraw their deposits.
The slide came a day after the bank announced a $2.25bn (£1.9bn) share sale to help shore up its finances.
Shares in banks have fallen around the world – with the four largest US banks, including JP Morgan and Wells Fargo, losing more than $50bn in market value.
One venture capitalist told the BBC the day’s events were “wild” and “brutal”.
Stock markets in Asia also fell on Friday, led lower by shares in banks.
Shares in SVB saw their biggest one-day drop on record as they plunged by more than 60% and lost another 20% in after-hours trade.
The firm launched the share sale after losing around $1.8bn when it offloaded a portfolio of assets, mainly US Treasuries.
But more concerningly for the bank, some start-ups who have money deposited have been advised to withdraw funds.
Hannah Chelkowski, the founder of Blank Ventures, a fund that invests in financial technology, told the BBC the situation was “wild”.
She is advising companies in her portfolio to withdraw funds.
Source:bbcnews.com
