The bank was looking to raise more than $2 billion from investors to plug a hole in its balance sheet.

SVB scrambled Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares. The stock was down another 63% in premarket trading Friday.

SVB, which does business as Silicon Valley Bank, launched a $1.75 billion share sale Wednesday to shore up its balance sheet. It said in an investor prospectus it needed the proceeds to plug a $1.8 billion hole caused by the sale of a $21 billion loss-making bond portfolio consisting mostly of U.S. Treasuries. The portfolio was yielding it an average 1.79% return, far below the current 10-year Treasury yield of around 3.9%.

Investors in SVB's stock fretted over whether the capital raise would be sufficient given the deteriorating fortunes of many technology startups that the bank serves. The company's stock collapsed to its lowest level since 2016, and after the market closed shares slid another 26% in extended trade.

SVB did not immediately respond to a Reuters request for comment.

• SVB Tries to Assure Clients After 60@ Stock Wipeout