According to Pitchbook data, there maybe as many as 65,000 US tech startups which bank with the suddenly insolvent Silicon Valley Bank. By Monday, many of these may not be able to pay their staff with the miserly $250K of their deposit that is under guarantee. An
extinction level event for a generation of startups according to Y Combinator CEO Garry Tan. This is not only a US problem, as SVB has a significant global footprint impacting tech startup ecosystems from
UK to
China - all in all, a disastrous second order effect of US Federal Reserve interest rate rise policy. Good thread and explainer
here. For us in tech recruiting, it can only mean more tech layoffs, hiring freezes, unpaid bills and startup failures. Brainfooder
Lars Schmidt with this
excellent collection of resources to use for those affected.