Silicon Valley Firms Scramble for Stability After Bank Failure

bank failure
bank failure

Venture funds extend short-term loans amid cash crunch, while some founders plan to use personal funds to cover payrolls

Startup investors scrambled over the weekend to help their portfolio companies meet immediate expenses and to shore up their own access to cash after Friday’s federal seizure of Silicon Valley Bank made some money inaccessible.

Venture-capital giant Andreessen Horowitz said it was helping founders of startups it has invested in find new banks and identify financing alternatives. Other venture leaders also said they were funding payroll for now at their portfolio companies that didn’t move cash out of SVB before it was taken over by the Federal Deposit Insurance Corp. Friday morning.