SkyBridge Capital Among Bidders for Silicon Valley Bank’s VC Arm
Silicon Valley Bank (SVB) is reportedly in the final stages of negotiations to sell its venture capital subsidiary, SVB Capital. Anthony Scaramucci’s SkyBridge Capital, Atlas Merchant Capital, and Vector Capital are competing in the bidding war for the VC arm. The sale price is estimated to be between $250 million and $500 million, but it is still subject to approval from the creditor’s committee. The final verdict is expected to be announced in the coming weeks.
Silicon Valley Bank’s Venture Capital Subsidiary
Despite SVB Financial Group’s bankruptcy proceedings, SVB Capital has remained unaffected and will continue its regular operations during the sale process. SVB Capital has been a major player in the investment sector, supporting prominent Silicon Valley venture capital firms like Sequoia and Andreessen Horowitz. With assets totaling $9.5 billion and investments in companies like Chainalysis, SVB Capital holds a significant portfolio.
Bankruptcy of Silicon Valley Bank
In March 2023, Silicon Valley Bank faced closure by financial regulators in California and subsequently filed for bankruptcy. This event marked a downturn for the bank, which had previously provided banking services to cryptocurrency firms. The bankruptcy crisis also affected other crypto-friendly banks like Signature Bank and Silvergate Bank. In a separate deal earlier this year, SVB Securities was acquired by its founder and top executives for $100 million.
Hot Take: SkyBridge Capital Competes for SVB’s VC Arm
SkyBridge Capital, led by Anthony Scaramucci, is vying for Silicon Valley Bank’s venture capital subsidiary, SVB Capital. Alongside Atlas Merchant Capital and Vector Capital, SkyBridge is engaged in a bidding war for the VC arm, with a sale expected in the near future. SVB Capital, which manages assets worth $9.5 billion and supports renowned Silicon Valley venture capital entities, has remained operational during the sale process. Silicon Valley Bank’s bankruptcy earlier this year had significant repercussions for the crypto industry, as it was one of the few banks providing services to cryptocurrency firms. The sale of SVB Capital will further shape the landscape of venture capital investments.
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