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The Economist — Economy — The impact of Silicon Valley Bank's collapse on the venture capital industry — Banking — Venture Capital — Finance

What the loss of Silicon Valley Bank means for Silicon Valley

Silicon Valley Bank's collapse will have a chilling effect on the venture capital industry, limiting financing and making the industry's adjustment to higher rates more painful still. The big banks are likely to be the main custodians of Silicon Valley's cash in the future.

1 min read
  • Silicon Valley Bank's collapse will have a chilling effect on the venture capital industry.
  • Startups used the low-cost funding from SVB to top up balance-sheets between equity funding rounds.
  • The big banks are likely to be the main custodians of Silicon Valley's cash in the future.
  • Fintechs had a busy weekend opening new accounts and relationships between fintechs and regional banks may scare off potential long-term clients.
  • SVB's demise has not meant a Silicon Valley cash crunch thanks to regulators.
What the loss of Silicon Valley Bank means for Silicon Valley
Regulators prevented a cash crunch—but venture capital has not emerged unscathed | Finance & economics
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