The following article reinforces my piece written after the SVB collapse titled, The effect of the SVB bank collapse on orthopedics.
SVB fuelled high-risk, high-reward tech firms. Now health start-ups feel bereft (EuroNews.next)
As the boss of three health start-ups in three decades, Bill Hunter considered many risks in his career. His corporate bank going bust was not among them.
While Silicon Valley Bank (SVB) was fighting to raise capital or find a buyer last week, Hunter was on a flight from Las Vegas to Vancouver, Canada. By the time he landed three hours later, SVB had been shut down and taken over by US regulators after what’s been described as the first Twitter-fuelled bank run.
The collapse, the biggest bank failure in the US since the 2008 financial crisis, has sent shockwaves across the tech sector, which SVB had catered to for four decades.
While the US federal government has stepped in to assure its clients would have access to their full deposits, entrepreneurs worry that the bank’s downfall will leave a big void and that cash to finance their ventures may dry up.
Founded in 1983, SVB had established itself as the go-to lender for US start-ups viewed as too risky by...
