“I had $50 million of my very own cash locked up in SVB,” Thiel stated FinancialTimes columnist Gillian Tett in an article launched Thursday. As he held his personal cash within the financial institution, Thiel was a little bit of an outlier as SVB primarily catered to startups and enterprise capitalists. The financial institution held $175.4 billion in complete deposits when it was seized on Friday, in keeping with federal regulators. Absolutely Thiel would even have withdrawn his personal $50m if he thought SVB would fail?

This Thiel was considered one of many purchasers who grew to become confused and fell out final week when SVB publicly disclosed a few of his monetary troubles could assist clarify the mentality of final week’s financial institution run. Founders Fund withdrew all of its deposits with SVB on Thursday morning, in accordance Axios, with the intention of returning it as soon as the panic subsides. Thiel wouldn’t have been a part of this dialog.

As Thursday progressed, the corporate started to get extra nervous, ultimately beginning to advise its holding corporations, which final 12 months collectively represented about $11 billion funding, to withdraw their very own funds, saying that there have been few dangers and inconveniences in doing so.

Founders Fund was removed from the one enterprise capital agency to amplify panic round SVB, inflicting its shares to plummet. drop 60% final Thursday, earlier than dropping one other 20% post-market, then falling once more Friday in pre-market buying and selling. The failure of SVB was designated first main banking race fueled by social media, as traders and enterprise capitalists took to platforms like Twitter and instantaneous messaging apps final week to unfold information and panic concerning the financial institution’s monetary scenario. SVB CEO Greg Becker warned of this phenomenon throughout a name to traders Thursday, saying the financial institution would solely be in disaster if “everybody thinks SVB is in bother”.

Traders and founders then bitterly criticized one another for his or her position within the disaster. “This urgency has not been helped by traders who’ve gone right into a frenzy and orchestrated a run on the banks,” stated Madison Maxey, CEO and Founding father of Loomia, stated Initiated Friday.

Many enterprise capitaliststogether with Pear VC in San Francisco and Hoxton ventures in London, suggested portfolio corporations to withdraw their funds from SVB, however Thiel’s Founders Fund nonetheless obtained many of the warmth given its velocity of motion and the massive measurement of its portfolio.

In a press release to AxiosFounders Fund chief monetary officer Neil Ruthven stated: “Thursday morning it was clear that we had been within the midst of a financial institution run and we responded in accordance with our fiduciary duties.”

Just like the Founders Fund managers who suggested shoppers to quickly withdraw their funds, Thiel didn’t consider SVB would in the end fail, he advised the FT.

Thiel, like all account holders at SVB with deposits over the insurable restrict of $250,000, will have the ability to get all of his a reimbursement after the federal government stepped in over the weekend with extraordinary measures to make sure that all depositors could be healed. Whereas Thiel will certainly be blissful to see his cash returned to him, it is unlikely that the inaccessible funds over the weekend have made a giant dent in his A fortune of 8 billion {dollars}.

Founders Fund and Peter Thiel didn’t instantly reply to Fortune‘s requests for feedback.