SVB Teaches Tech Startups a Crucial Lesson About Cash
Founders who poured assets into Silicon Valley Bank can breathe a sigh of relief. Then they should start diversifying their money.
An entrance to the Alphabeta Building, which houses the offices of UK unit of Silicon Valley Bank.
Source: Bloomberg
If you were the founder of a tech startup in the US or Europe, you may have gone to bed on Friday with the onset of an ulcer and woke up on Monday in a state of pure relief.
Over the weekend, banks, regulators and governments swooped in to contain the fallout from the collapse of Silicon Valley Bank, a lender of choice for technology startups in the US, UK and parts of Europe. Unable to access funds, many depositors feared they’d be unable pay invoices or even their own staff in the coming weeks. On top of the ongoing tech rout and increased scrutiny venture capital firms have been giving to startups, this was going to be the mother of all curveballs.