Arab Press

بالشعب و للشعب
Wednesday, Jan 15, 2025

Venture capitalists 'almost took the whole system down' by having startups stow all their cash at Silicon Valley Bank, says one tech billionaire CEO

Venture capitalists 'almost took the whole system down' by having startups stow all their cash at Silicon Valley Bank, says one tech billionaire CEO

Top VC firms bear blame for the fallout from SVB's collapse for letting so many startups rely on one bank, according to C3.ai CEO Thomas Siebel.
As post-mortems of Silicon Valley Bank's collapse go, billionaire Tom Siebel has a blunt analysis: Top venture capitalists should have seen it coming and prepared their portfolio companies, he told Insider.

"These guys didn't didn't fulfill their fiduciary responsibility to anybody, they almost took the whole system down," Siebel, CEO of software firm C3.ai, told Insider on Monday.

"The fact that Marc Andreessen, Peter Thiel, Douglas Leone, and every other name that you've heard about, is letting all of their companies put all of their money in one — I mean, best case — C-minus financial institution, how is that possible?" he said, referring to the VC elites.

Andreessen is a cofounder of Andreessen Horowitz, while Peter Thiel is a cofounder of the venture capital group Founders Fund, and Leone is a partner at Sequoia Capital.

"They're supposed to be the adults in the room, have a fiduciary responsibility — not only to shareholders of their portfolio companies, but to their limited partners," Siebel said.

A representative for Andreessen Horowitz declined to comment. A representative for Sequoia Capital, which is not an investor in C3.ai, declined to comment. A representative for Founders Fund did immediately respond to Insider's request for comment on Monday evening.

Since regulators closed down Silicon Valley Bank on Friday, the 40-year-old institution whose popularity in the startup world shot up in more recent years has been under the control of the Financial Deposit Insurance Corporation.

The Biden administration has since indicated that the bank's customers, many of whom include smaller startups scrambling to pay employees, would be made whole for their deposits.

A representative for the FDIC declined to comment, and representatives for Silicon Valley Bank did not immediately respond to an emailed request for comment on Monday evening.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Spain Proposes 100% Tax on Properties Purchased by Non-EU Residents
Rising Casualties and Intense Diplomacy: The Conflict in Gaza Continues
Joseph Aoun Elected as Lebanon's New President: Ending a Prolonged Power Vacuum
Joseph Aoun Elected Lebanon’s 14th President Amid Political Stalemate
Trump Signals Shake-Up at the Pentagon Amid Transition Concerns
U.S. Supreme Court Denies Trump's Last-Minute Bid to Block Sentencing in New York
Escalating Conflict in Gaza: Casualties Surge as Diplomatic Efforts Continue
Escalation in West Bank: Israeli Boy Killed in Palestinian Gun Attack
U.S. Supreme Court Denies Trump's Appeal to Delay Sentencing in New York Hush Money Case
Lancet Study Reveals Underestimation of Gaza War Death Toll by 40 Percent
Global Acclaim Follows Election of Lebanon's New President Joseph Aoun
Saudi Leaders Extend Congratulations to Joseph Aoun, New President of Lebanon
UN Accuses Israel of Restricting Humanitarian Aid in Northern Gaza
US Pledges $500 Million Military Aid Package to Ukraine
Ethiopia Endures a Series of Earthquakes in Brief Timespan
Joseph Aoun: Lebanon's Fourteenth President Amid a Legacy of Challenges
President Biden Reports Meaningful Progress on Gaza Agreement
Lancet Study Reveals Higher Gaza Death Toll than Official Reports
Global and Arab Welcome for Joseph Aoun's Election as Lebanon's President
Biden Cites 'Real Progress' in Gaza Deal Talks Amid Intense Negotiation Efforts
Escalation in Gaza: Casualties Rise Amidst Ongoing Negotiations
Escalating Conflict in Gaza: Casualties Surge as Negotiations Continue
Quaker Group Cancels NYT Ad Over Dispute on Gaza Terminology
IDF Imposes Media Restraints Amid Legal Concerns For Soldiers
Trump's Counter-terrorism Nominee Urges UK to Repatriate British IS Members from Syria
Uncovering Iraq's Mass Graves: A Haunting Search for the Missing
Kurdish Commander Appeals to Trump for Continued U.S. Military Presence in Syria
Global Powers Call for Stabilization Efforts in Syria Amid Transition
Syria at a Crossroads: The Unceremonious Collapse of the Assad Regime
Trump's Syria Conundrum: Staying Out May Be Easier Said Than Done
Syrian Rebel Leader Pledges to Dismantle Assad's Notorious Prisons
Escalation in Gaza: Increased Casualties Amid Ongoing Conflict
Dissecting Luxury: A Study of American Society in the Digital Age
Escalating Violence in Gaza as Ceasefire Negotiations Intensify
US Eases Missile Technology Export Regulations for Key Allies
Escalation in Gaza Conflict: Fatal Strikes and Escalation in the West Bank
Gaza Cola: A Palestinian Initiative Aimed at Rebuilding Amidst Conflict
Poland Shuts Consulate in Saint Petersburg Amid Rising Diplomatic Tensions
Miracle at Sea: Baby Born on Migrant Vessel Rescued by Spanish Coast Guard
Saudi Crown Prince Engages in Diplomatic Dialogue with Ukraine’s Zelensky
Israeli Military Recovers Body of Hostage in Gaza, Evidence Suggests Son Also Killed
Explosion at Ammunition Depot Rocks Syria's Idlib Region
Saudi Arabia Battling Unprecedented Floods Amid Torrential Rains
Cease-fire Negotiations in Qatar: No Timeline for Resolution
UN Seeks Additional $371.4 Million for Lebanon Amidst Ongoing Crisis
Saudi Arabia Continues Aid Bridge to Syria Amid Ongoing Crisis
Israel Declares West Bank a 'Primary Arena' of Threats Amid Escalating Conflict
U.S. Sanctions Shake Sudan's Political Landscape Amid Ongoing Conflict
Israeli Military Recovers Body of Hostage from Gaza
Violence Escalates as Al-Qaeda Militants Clash with Malian Army
×