Silicon Valley Bank’s implosion leaves a gaping hole for start-ups

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The tech world relied on Silicon Valley Bank for everything from mortgages to credit cards. Its implosion has left them reeling.

, worried that SVB’s collapse will stall America’s innovation engine. Already, questions are emerging about whether lending to small tech companies is a viable business model going forward.

, the elimination of SVB is a major blow amid the already concerning climate for tech — and will set the industry back even further. By the time of its collapse, the firm served more than half of the venture-backed companies in the United States, according to its website. It also required many customers to bank with it exclusively as a condition of service, leading to even more concentration.

That guarantee has stemmed the immediate panic that swept through the tech world over the weekend. On Monday, most companies were able to access their money, and many began taking it out to put in other banks. But the long-term impact of SVB’s failure is just beginning to set in. “It’s frustrating because you get one warning sign … it costs nothing to take your money somewhere else and potentially you’re risking money by leaving it in,” he said.

Last week, Watson first started hearing that something was wrong Wednesday night. By Thursday, it was all over social media.

 

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Shame trump made failure possible

Credit cards are a scam anyways

It was a fountain of Biden’s Startup Free Money initiative. They donated money to MANY Democrat legislators and tens of millions to Black Lives Matter. And it went BOOOM because nothing they invested in worked out. Woke.

Oh no...anyway

Good! If the startups were any good SVB would have been profitable and wouldn’t have collapsed.

Woke Goes Broke is not just a slogan...

And in our hearts

You mean regular bank stuff? Wow, how novel.

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