BACKGROUND - First, a little context. SVB is not a normal consumer bank, but it "was" the 16th largest in the US. SVB is a bank that invests and supports startup businesses. At my first startup Novalign back in 2008, we took $5M of SVB cash in exchange for equity in our company. At YE 2022, SVB had $209B in assets and about $175B in deposits.
THE EVENT - On March 10th, SVB because insolvent after businesses withdrew their money in a panic. SVB had made some bad investments and had to sell off assets to stay solvent. Once this news spread, there was a run on the bank. The FDIC has taken over SVB and is looking for a buyer.
Snapshot of stock price at SIVB Monday March 13th.
EFFECTS ON ORTHO - Many ortho startups have loan agreements, revolving credit facilities, and other relationships with SVB Bank.
Below are a couple examples of publicly traded ortho companies with some SVB exposure today.
Si-Bone
Based on Si-Bone’s 10-K report, Truist believes the vast majority of its money sits in separately managed accounts not with Silicon Valley Bank. However, the company has a $51 million credit facility with the bank. That includes a $36 million term loan and $15 million revol...
