SVB Financial Group shares plunged more than 62% on Thursday, a day after the lender launched a $1.75 billion share sale to shore up its balance sheet and navigate declining deposits from startups struggling for funds amid increased spending.
VC investors are also more hesitant to sign big checks due to a rout in the stock market, particularly in the shares of high-flying technology firms.
Despite the latest concerns, analysts at brokerage firm Wedbush Securities said the bank had received significant proceeds from selling securities and raising capital. Funds raised from the sale will be re-invested in shorter-term debt and the bank will double its term borrowing to $30 billion.
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