‘A Huge Disruption’: Startups Worldwide Gird for Life After SVB
Tech workers are suddenly learning a lot more about banking.
Startups from Silicon Valley to London, Tel Aviv and tech hubs across Africa depended on Silicon Valley Bank as a one-stop shop for everything, from holding their fortunes to personal mortgages. Now, the bank's failure has forced them to navigate a new world of banking just as the financial markets tip into chaos.
Even if the bank continues under a new name, investors and tech firms alike see a future that is significantly more difficult. Deals ranging from venture debt financing to funding rounds are likely to be impacted by recent days’ upheaval. And just as startups are trying to move their money around and searching for new, safer banks, the entire financial sector is in turmoil with Credit Suisse Group AG plunging to the lowest level on record and dragging other major institutions down with it.