Startup founders who didn't pull their cash from Silicon Valley Bank before its shutdown on Friday are hoping for the bank's sale or a saving grace as they scramble for emergency loans from investors on boards or facilities from third-party lenders.

"I've seen a lot of ups and downs in Silicon Valley. I've seen the dot-com bust, I've seen the housing crisis. This is something else," said Megha Chawla, founder of pre-seed startup Paliq and a 25-year veteran of the industry.

Silicon Valley Bank, a major lender in the tech world that did business with nearly half of all VC-backed startups in the US, was shut down and seized on Friday morning by the FDIC. Despite it having solid finances and its CEO urging calm, investors and depositors got spooked by its launch of a $2.25 billion share sale Wednesday. Depositors withdrew $42 billion from the bank on Thursday alone, spurring a bank run.

https://pitchbook.com/news/articles/startups-SVB-investors-panic-cash-bank-sale