Following the collapse of Silicon Valley Bank (SVB), there are many questions being asked across the financial and tech space: what caused the bank to collapse? Could it have been prevented? What could the bank itself and indeed its 40,000 customers - mostly in tech – done differently to mitigate risk and minimise impact.
Given SVB’s involvement in funding many fledgling tech start-ups and scale-ups, we look into what the Bank’s failure could have spelled for the viability of these businesses, and indeed the customers they supply into.
Silicon Valley Bank, the 16th largest bank in the US, was shut down on Friday by US regulators. Founded in 1983, Silicon Valley Bank has played an integral role in the technology sector, lending capital to tech start-ups with high growth potential.
How will the Silicon Valley Bank collapse impact tech firms
The impact of the Silicon Valley Bank collapse on tech start-ups is expected to be significant as many will struggle to survive without access to capital to pay business expenses.