Silicon Valley Bank has been closed by the state of California after attempts to raise capital failed, according to the Federal Deposit Insurance Corporation.

The FDIC announced the move on Friday, just days after Silicon Valley Bank — the 16th largest federally insured bank in the country — unexpectedly said that needed to raise more than $2.2 billion. The FDIC took the bank into receivership and created the Deposit Insurance National Bank of Santa Clara, which holds deposits from Silicon Valley Bank.

This is the first government-backed bank to fail this year and is a big deal in part because the bank is tied to venture capital-backed companies.

“The FDIC will pay uninsured depositors an advance dividend within the next week,” the government corporation said. “Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.”

Following the Wednesday update about needing to raise capital, Silicon Valley Bank’s stock began to plunge. The bank’s stock fell more than 60% in just a matter of days until trading was halted and the bank was declared dead.

Silicon Valley Bank had 17 branches in California and Massachusetts. The FDIC said that the bank’s main office and all other branches will reopen on Monday and insured depositors will have access to their funds.

At the end of last year, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits.

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The news comes amid broader fears of a recession brought on by the Federal Reserve hiking interest rates in order to drive down too-high inflation, which has been plaguing the economy for about two years now.