Silicon Valley Bank (SVB) was a financial institution that was once known for its focus on the technology and startup industries. However, in recent years, the bank has faced a series of challenges that ultimately led to its collapse. Silicon Valley Bank was once the 16th largest bank in the US, with a value of more than $200 billion. It was also the preferred bank for the tech sector, catering to the financial needs of technology companies worldwide.
But the Silicon Valley Bank collapse began with a series of ill-fated investment decisions, including investing heavily in long-dated US government bonds backed by mortgages. Economic conditions soured over the past year, and many of the bank’s customers started drawing on their deposits, causing the bank to start selling some of its bonds at steep losses. In March 2023, the bank officially declared bankruptcy.
Alternative Silicon Valley Bank capital solutions
The collapse of Silicon Valley Bank has had a significant impact on the technology and startup industries it served. Many startups that relied on the bank for funding and support are now left without a banking partner. As the technology and startup industries continue to evolve, it is essential for financial institutions to remain agile and adaptable to change to avoid a similar fate.
If you have been affected by the Silicon Valley Bank collapse, it is essential to seek professional advice on how to move forward. At Viceversa, CEO Matteo Masserdotti notes, “SVB represents one of the biggest financial institutions in the innovation and technology space. The bank held deposits equal to 70% of US startup funding last year. As one of the pillars of the tech industry, its dissolution will be felt by many. We recognize the challenging time ahead, particularly for companies now facing liquidity issues.”
SVB – Business Continuity Plan
We at Viceversa, are offering a Business Continuity plan for EU-based companies impacted by this news. Our plan will consist of:
📌 Extension of capital advances for expenses targeting business continuity (commercial activities, marketing, inventory, etc);
📌 Grace period to allow companies to get back on their feet and collect their deposits, if possible;
📌 Fast track to onboarding, valuation and capital deployment, to get back to business as fast as possible
Now more than ever, we want to support the community and the people that are part of it. In order to get in touch quickly, contact us by using the link below.
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