SVB has supported nearly half of U.S. venture-backed startups, according to the bank. And because significant funds are currently locked up, many startups are concerned about making payroll in the coming days.
Nikita Bier, who founded the social media app Gas, for instance, went on Twitter on Friday to share his distress.
Read Also: Larry Summers Says Consequences 'Severe' If Silicon Valley Bank Crisis Isn't Properly Resolved
Some startups indirectly linked with SVB have been also hit by its collapse.
Toy store Camp similarly said it is distressed because its funds with SVB are locked.
"All of our cash was at SVB, and we are trying to build up our balance at Chase," Camp CEO and co-founder Ben Kaufman told Insider.
If SVB does not fetch a buyer, the FDIC may need to liquidate the bank and sell its assets to make depositors, like Camp, whole again.
"The FDIC will love to have the bank bought off their hands, and I am sure they will work furiously over the weekend to arrange a shotgun marriage," Sandeep Dahiya, associate professor of finance at Georgetown University's McDonough School of Business, told Insider.
SVB, a subsidiary of SVB Financial Group (NASDAQ:SIVB), was shut down by the California Department of Financial Protection and Innovation last Friday.
Read Next: SVB's Collapse Rooted In Treasury Bets During Pandemic: 'Once It Started, There Was No Stopping It'
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