Some VCs See Supporting Silicon Valley Bank as Act of Loyalty

Among venture capitalists, there’s a widening divide between those who say startups would be wise to pull money out of Silicon Valley Bank and those who suggest keeping it there is a moral imperative that could help save the institution.

Mark Suster, a prominent Silicon Valley venture capitalist who heads Upfront Ventures, called on fellow VCs to “speak out publicly to quell the panic” about SVB.

The financial world was in turmoil on Friday after SVB Financial Group, the parent company of SVB, faced a run on its assets. The chaos was a result of a surprise announcement ...