Silicon Valley Bank was a one-stop shop for everything, from financing deals to holding founder’s fortunes and providing personal mortgages.
Lizette Chapman, Hannah Miller and Priya Anand
Race Capital general partner Edith Yeung said that venture capital transactions will likely be delayed or even scrapped amid the bedlam. “I’m sure there were deals made last week that are now not going to happen,” she said after SVB melted down. “This is a huge disruption to the venture space.” David Pakman, managing partner at crypto VC firm CoinFund, said that tech firms and venture capitalists are still reeling from this weekend’s events, despite the government backstop. For startups, SVB distinguished itself by making allowances for the volatile nature of their businesses. “You’re not going to get that from a Big Three bank,” he said.
For established US venture firms, the path forward may be simpler. “VCs don’t have trouble getting bank accounts,” Pakman said. The global fallout may be felt even in places where SVB didn’t have a large presence. While SVB only had relationships with a limited number of companies in Africa, startups there are still indirectly exposed, according to Samuel Sul, director of the financing group at Renaissance Capital in London.
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