What Happened to Silicon Valley Bank?

Silicon Valley Bank (SVB) was a U.S. commercial bank founded in 1983 that specialized in serving venture-backed startups, growth-stage tech and life-sciences firms, and the venture capital ecosystem. It offered operating accounts, venture debt, treasury services, and private banking to founders and funds, positioning itself as the go-to banking partner for innovation businesses.

As low-rate years swelled deposits and client cash balances, SVB invested heavily in longer-duration securities. When interest rates rose sharply and tech funding slowed, unrealized losses on those securities combined with concentrated, networked depositors to create vulnerability. In March 2023, after announcing a securities sale and planned capital raise, the bank experienced a rapid run on deposits.

On March 10, 2023, California regulators closed SVB and appointed the FDIC as receiver. A bridge bank continued critical services while authorities moved to protect depositors and stabilize the system. Later in March, First Citizens Bank agreed to acquire substantially all deposits and loans from the receiver. SVB’s collapse became a defining event of the 2023 banking turmoil, prompting sector-wide reviews of interest-rate risk management, liquidity buffers, and supervision for institutions with concentrated client bases.