Hello Sifted reader,

Silicon Valley Bank (SVB) — in the US and now the UK — has been toppled by a bank run.

In a dramatic turn of events that unravelled on Friday, the 40-year-old institution saw founders and investors seek to withdraw their funds from the bank en masse, fearing for its liquidity.

That, of course, made matters worse, and at 5pm GMT the US regulators stepped in to close SVB in California.

Following the news, SVB UK sought to reassure its customers that it was still operating and that its balance sheet was separate from its US parent company's — but it seems like the message arrived far too late.

Just before 11pm GMT, the Bank of England announced that it would be placing SVB UK into insolvency proceedings.

So — catch your breath — what happens next?

It could be bad. Startups and investors with UK SVB can expect to get £85k of their money back eventually; in the US, $250k should be protected. For those who didn't withdraw funds yesterday, or who didn't have money sitting in several accounts, the next few weeks could be very hairy.

Will startups be able to make payroll? What alternative financing is available to them? How can VCs step in to help? Are any VCs in trouble? What happens if SVB gets bought?

We'll be asking all these questions and more in a special newsflash Sifted Talks next week. Register your interest here — and hit reply to this email with any questions you especially want answered.

We'll be covering this story for as long as it runs.

– Amy Lewin, Sifted editor