Silicon Valley bank failure: The United States has suffered its second-largest bank failure in history. The California Department of Financial Protection and Innovation has closed Silicon Valley Bank (SVB) in Santa Clara, California. According to the Federal Reserve, it was the 16th largest bank in terms of assets at the end of 2022, with $209 billion in assets and more than $175 billion in deposits. Silicon Valley Bank operated 17 locations throughout California and Massachusetts. Here’s why SVB failure is bad news for technology startups, why it’s a problem for Indian tech startups, and answers to other important questions.
Also Read: Hindustan Unilever appoints Rohit Jawa as CEO, to succeed Sanjiv Mehta
Silicon Valley Bank (SVB) was one of the largest banks in the technology world, supporting small businesses. SVB is intended to serve businesses, with over half of its loans going to venture funds and private equity firms, and the remaining 9% going to early and growth-stage companies. Clients who use SVB for loans are also likely to keep their deposits with the bank. SVB has reportedly been one of the most preferred banking options for startups and the tech industry in Silicon Valley for several years, owing to its understanding of the industry and flexibility in many aspects that suit the startup ecosystem.
The collapse of Silicon Valley Bank is a metaphor for the entire West Coast woke culture. They bought into White House propaganda, and now they are broke.
Reality bites.“Silicon Valley Bank bought those treasuries while the White House was telling them that inflation was… https://t.co/VSnepuvv9v
— Robert W Malone, MD (@RWMaloneMD) March 12, 2023
It was a long night for several Indian start-up founders who had accounts at the troubled Silicon Valley Bank (SVB) and had a lot more than $250,000 parked there late Friday night. That is more than what US regulators, who shut down the bank, said would be insured, with the Federal Deposit Insurance Corporation (FDIC) requesting that companies with accounts worth more than $250,000 call a toll-free number.
