Silicon Valley Bank in crisis – here’s everything you need to know

Shares in SVB, a key lender to technology start-ups, plummeted on Thursday as investors moved to withdraw their deposits

SVB was the banking partner for nearly half of all US venture-backed tech and healthcare companies that listed on stock markets in 2022. Picture: David Paul Morris/Bloomberg

The start-up world was thrown into chaos on Thursday when SVB, a lender little-known outside of Silicon Valley sparked a panic that dragged down banking shares around the world.

Events quickly snowballed after Silicon Valley Bank announced a share sale to shore up its finances, after reporting a significant loss on its portfolio. By Friday, the lender was placed in receivership.

So what does SVB bank do and why has it sparked panic? Here's everything ...