CEOs of technology companies, prominent venture capitalists and company founders, including OpenAI CEO Sam Altman, tried this weekend to save the lives of companies left without money after the collapse of Silicon Valley Bank, News.ro reports.

Friday’s dramatic bankruptcy of a bank that focuses on tech startups is the biggest since the 2008 financial crisis.

It rattled global markets, sent bank stocks plummeting and left California entrepreneurs worried about paying their salaries.

To avoid what Harry Tan, CEO of startup accelerator Y Combinator, called a potential “extinction-level event” in the tech sector, industry leaders have been quick to do what they can to save small businesses.

Altman, who runs one of Silicon Valley’s most popular companies, has bailed out several entrepreneurs with his own money, according to a tweet from his brother and beneficiary, who spoke to Reuters.

“I was out of options, so I sent him an email,” Dr. Gurson, CEO of Rad AI, said in an interview on Saturday. Within an hour or two, Altman responded, offering him a six-figure sum: enough to cover his salary and with no strings attached, just a request to repay the money as soon as Gerson could, he said.

Asked for comment, Altman told Reuters: “I remember the investors who helped me when I was running the startup, and I really needed them, and I always try to repay them.”

“Everybody’s Running”

Enrique Dubugras, co-CEO of fintech startup Brex, spent the weekend working on the phone after his company announced an emergency credit line on Friday to help startups pay their next paycheck.

As of Saturday evening, he said, Brex had received $1.5 billion in demand from nearly 1,000 companies.

“We are trying to register creditors by the end of tomorrow. Everyone is running,” he said.

Even small startups are stepping up to help others.

Aleem Mavani, founder of Streak, a company with about 30 employees, tweeted Friday that he would unconditionally lend personal money to other small startups worried about paying staff.

He said he then had discussions with several companies and sought to prioritize loans for those living paycheck to paycheck.

“I’m a founder, and I know how terrible it would be to not charge wages,” Mawani said in an interview.

By Saturday evening, more than 3,500 CEOs and founders, representing about 220,000 employees, had signed a petition launched by Y Combinator, calling directly on US Treasury Secretary Janet Yellen and others to support investors, many of them small businesses at risk of not paying their employees . the next 30 days.

The petition called for “tighter regulatory oversight and capital requirements for regional banks” and an investigation into any “misconduct or mismanagement” by SVB executives.

More than 100,000 jobs could be at risk, the petition warns.

SVB did not respond to requests for comment, and Y Combinator did not comment on the petition.

“People have mortgages to pay, they have bills”

Venture investors advised startups to look for alternatives to obtain short-term liquidity.

Some, notably Lowercarbon Capital, have offered loans to portfolio companies that have funds locked up in SVB.

His partner, Clay Dumas, said Lowercarbon would provide payroll support for the next two weeks and transfer the funds on Monday.

Khosla Ventures told Reuters: “Given the fast-paced environment, we are talking to more than 100 portfolio companies, assessing their critical needs and intending to help where we are leaders or large investors.”

Rad AI’s Gurson hadn’t spoken to Altman in years when he emailed the OpenAI chief on Saturday morning, desperate for help.

The startup relied on SVB, whose sudden shutdown meant it didn’t have enough money to pay about 65 employees on Monday, he said.

“People’s livelihoods depend on us,” said Gerson, whose San Francisco-based company helps radiologists work more efficiently and includes staff with diverse roles and capabilities. “They have to pay the mortgage; they have bills.’

Gerson’s co-founder waited eight hours for the Federal Deposit Insurance Corporation’s hotline, he said.

Several attempts to transfer funds from SVB failed. But Gerson saw a tweet from Altman, whom he met as a founder while attending Y Combinator in 2014, where Altman was president.

According to him, they did not know each other very well. “It’s like a lifeline,” Gerson said of Altman’s generosity.

Gurson “modestly” estimated that Altman has given more than $1 million to support other startups that need similar help.

“The crazy thing here is that he is not an investor in our company. He didn’t ask for anything,” Gerson said.

Altman would not comment on how much he gave to the companies, but said he did not see his contributions as risky.

“Even if SVB can’t find a buyer or a loan over the weekend, a lot of the money the startups have on deposit will be available to them. But in the meantime, people are facing a real cash crunch through no fault of their own, and the workers need to be paid,” he said.

Read also:

• The sudden collapse of Silicon Valley Bank (SVB), the biggest bankruptcy since 2008
• US: Fed officials to hold closed-door meeting Monday after Silicon Valley Bank collapse
• The biggest bank failures since 2008

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