Startups Are Worried About Paying Employees After SVB Collapse
- Payroll service provider Rippling facing processing delays
- ‘Tens of thousands of people’ may not get paid next week
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Startup founders are beginning to worry about whether they’ll be able to keep paying employees following the failure of Silicon Valley Bank.
Payroll service provider Rippling notified customers on Friday that some processing had stalled because SVB helped handle its payments. The company, a startup itself, switched to JPMorgan Chase, but not soon enough: Paychecks were already “in flight” with SVB and have yet to be paid out — and the firm is still trying to understand what the bank’s collapse on Friday will mean for them, Rippling Chief Executive Officer Parker Conrad said in a Twitter post.