Financial Times — Tech — The end of Silicon Valley Bank's informal financial relationships with tech start-ups — Us & Canadian Companies — Fintech — US Banks

Tech start-ups assess damage caused by Silicon Valley Bank collapse

Tech start-ups scramble to deal with tighter regulation and the influence of larger banks after the collapse of Silicon Valley Bank (SVB), which had close personal connections with the sector and was more willing to lend to start-ups than larger banks.

March 15, 2023 . 10:37 PM

1 min read

Tech start-ups scramble to deal with tighter regulation and influence of larger banks after the collapse of Silicon Valley Bank (SVB).
Young tech companies are making plans to take cash out of the bank and diversify banking relationships.
SVB was more willing to lend to start-ups than larger banks and had close personal connections with the sector.
Banks such as Wells Fargo and JPMorgan could fill some of the gaps left by SVB but their services may not match SVB's business model.
The loss of a supportive institution is likely to tilt technology markets further in favour of bigger platform companies.