Fintech startup Brex acquired billions of {dollars} in deposits from Silicon Valley Financial institution prospects on Thursday, CNBC has realized.
The corporate, itself a high-flying startup, has benefited after enterprise capital corporations advised their portfolio corporations to withdraw funds from Silicon Valley Financial institution this week.
Brex opened 1000’s of recent accounts totaling billions of {dollars} in inflows on Thursday, mentioned an individual with direct data of the scenario. By noon Friday, regulators shut down SVB and took management of its deposits, based on the Federal Deposit Insurance coverage Corp.
Different corporations together with JPMorgan Chase, Morgan Stanley and First Republic additionally noticed heightened inflows Thursday, as SVB’s inventory tanked amid VC-fueled considerations of a financial institution run. The dramatic decline in SVB shares sparked a sectorwide sell-off that reminded some startup founders of what occurred throughout the 2008 monetary disaster. Earlier this week, crypto-focused financial institution Silvergate mentioned it was winding down operations.
Brex declined to touch upon its inflows.
The exodus of deposits Thursday put elevated strain on SVB, which tried to lift fairness funding earlier this week and had turned to a possible sale, CNBC reported.
