Where Will Startups Turn To Now That SVB is Gone?
Silicon Valley Bank played an important role in financial innovation tied to the world’s tech hub. Its demise could be profound.
Where will tech startups turn now?
Photographer: Bertrand Guay/AFP/Getty Images
Life was already tough for startups. Funding had dropped to the lowest in five years, venture capital investors were getting skittish, and wealthy angels started holding onto their cash instead of sharing it like candy. Then Silicon Valley’s own bank shut its doors, halting payrolls and forcing founders to stop managing their businesses and focus on the only thing that matters: cashflow.
When the nexus of entrepreneurship woke Monday morning after a weekend full of uncertainty, they learnt that while Silicon Valley Bank may not be saved, the deposits it held are safe. That doesn’t mean countless fledgling companies are, though, nor the lifestyles the more-wealthy among them enjoyed.