SVB board bickering wasted crucial time before collapse

March 18, 2023

Silicon Valley Bank lost a crucial day to raise money from investors after its board rejected executives’ financial projections, leading to a chaotic and ultimately doomed scramble for cash, people familiar with the matter said. Bankers were aiming to begin feeling out investors the following Tuesday, March 7, to gauge interest before a broader share sale was launched to the public. Board members pushed for rosier forecasts, believing that venture firms sitting on record amounts of money would have to start investing it sooner. ADExecutives returned with revised projections that were approved March 7, leaving only one day to begin the process of sounding out investors. The share sale was scrapped and by the end of the day on March 9, depositors had yanked $42 billion out of SVB, which was seized by regulators the following day.