Failed SVB impacts tech players
March 13, 2023
By Chris Forrester
The Silicon Valley Bank failed on March 10th, leaving Roku, production platform Vimeo and RocketLab at risk until the Federal Government clarifies its position.
Roku had some $487 million (€454m) in cash deposited at the bank, the USA’s 16th largest. RocketLab had $38 million in its SVB account, although in a statement it said this sum represented less than 8 per cent of its cash held at various banks.
Astra Space, BlackSky, Planet, Redwire and Space Perspective are some of the other space or media-related businesses who had relationships with the bank.
SVB, as well as providing loans and revolving credit lines for space companies and other high-tech firms, the bank was recognised as a source of funding for early-stage start-ups.
The government’s announcement said: “Silicon Valley Bank, Santa Clara, California, was closed [March 10] by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of SVB”.
“All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors,” the FDIC stated.