Startups breathed a sigh of relief when the Federal Reserve announced it would backstop Silicon Valley Bank deposits. Yet amid anxiety about the banking sector and the future of venture capital funding, this past week has been surprisingly busy.
Some are surely opting to stick with SVB, though it's unclear how popular this this approach is.While not a universal sentiment, a non-trivial portion of the startup world says SVB should survive and remain a sustainable business. This would be a good outcome for the U.S. banking system, and because SVB itself is a unique startup friendly institution., advising startups to keep at least 50% of their cash at the embattled bank .
Also, the minimum balances at other banks are posing a challenge for smaller companies looking for SVB alternatives.: A slew of fintech companies providing various services, to startups and other businesses, have stepped in to offer alternatives to SVB, and banks in general. For example: Brex, best known for its corporate credit cards for startups, announced over the weekend emergency credit lines for companies. It also offers various other cash management options like the ability to split funds across several banks, in FDIC-insured $250,000 chunks.
Arc, which also offers a similar slew of services and rolled out same-day payroll financing and venture debt this week, said on Wednesday that since the prior Thursday, it’s seen “15x growth in deposit volumes and 500+ applications for hundreds of millions in both short-and-long-term financing.” Ramp, yet another fintech startup focused on business cash management, set up a referral program to direct customers to alternative banks, facilitating over $1 billion in deposits within the first 48 hours after SVB shut down.“[Banks are] always better at doing loans because they have the lowest cost of capital,” Brex CEO Henrique Dubugras tells Axios, adding that his company returned its SVB funds to the bank and even added a little more.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Silicon Valley Bank’s parent company files for bankruptcy protectionSVB Securities and SVB Capital were not included in the filing by SVB Financial Group.
Weiterlesen »
SVB Financial Group, parent of Silicon Valley Bank, files for bankruptcy protectionSVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.
Weiterlesen »
SVB files for bankruptcy, a week after Silicon Valley Bank's closureSVB Financial files for bankruptcy, a week after Silicon Valley Bank's closure by regulators
Weiterlesen »
SVB Financial Group, parent of Silicon Valley Bank, files for bankruptcy protectionSVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.
Weiterlesen »
SVB Financial, former parent of Silicon Valley Bank, files for bankruptcyThe bankruptcy comes days after its bank was shut down and taken over by regulators amid a solvency crisis.
Weiterlesen »
How the SVB crash exposed cracks in Silicon ValleyBy late Thursday, it was clear that important players in Silicon Valley and the tech and VC world were breaking ranks.
Weiterlesen »