An Irish tech entrepreneur has warned that “a huge amount of startups are going to get stung” by the collapse of Silicon Valley Bank.
AN IRISH TECH entrepreneur has warned that “a huge amount of startups are going to get stung” by the collapse of Silicon Valley Bank .
The Ireland Strategic Investment Fund has said the around $100m it had invested in five funds managed by SVB Capital, a subsidiary of the Silicon Valley Bank Financial Group, would not be impacted by the panic that had started on Thursday with a massive drop in share price and a subsequent share sale.
Phelan said he had a lot of money on deposit in SVB because “we’re a venture-backed startup and the venture capitalists like you to use SVB”.“But I don’t think anyone could have predicted that a top 20 bank in the US, the banker of start-ups, could be gone in 24 hours.” “We pulled it all out,” said Phelan, “and I started dealing with calls from friends who are in the startup world, ‘what do you think?’
“And then you look at Twitter this morning where the big venture capitalists are saying that this needs to be the government now, because their companies don’t have money to make payroll next week.”“On Monday, you’ll see startup CEOs beginning to panic,” said Phelan.
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