Silicon Valley Bank collapsed late Friday morning after a run on the bank, roiling global financial markets amid fears of a possible liquidity crisis.
Venture capital-backed companies were reportedly being advised to pull at least two months’ worth of "burn" cash out of Silicon Valley Bank to cover their expenses. Typically, VC-backed companies are not profitable and how quickly they use the cash they need to run their businesses – their so-called "burn rate" – is a typically important metric for investors.
Janet Yellen, US Treasury secretary, during a House Ways and Means Committee hearing in Washington, DC, US, on Friday, March 10, 2023. Earlier in the day, Yellen said that Treasury is "very carefully" monitoring a few banks amid fallout from the Silicon Valley Bank crisis.
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