The bankruptcy of Silicon Valley Bank (SVB) has sent shockwaves through the global IT industry, prompting entrepreneurs worldwide to reassess their financial dependencies. The crisis began when California-based companies rushed to withdraw funds, revealing the bank’s instability.
Sam Franklin, CEO of London-based Otta, shared his predicament: “About 90% of our capital was in SVB.” Faced with payroll challenges, he abandoned personal tasks to address urgent business needs.
Florian Simmendinger, co-founder of Hong Kong’s Soundbrenner, initially missed the brewing panic but quickly realized the severity when he found his account access limited. “Are you serious? We already lost the ability to access our account during business hours,” he expressed. 
The interconnectedness of tech firms became evident as many startups across Europe and Asia relied on SVB, drawn by its reputation and specialized services.
As concerns mounted, Quincy Lee, founder of Electra Era in Seattle, attempted to withdraw millions but faced website crashes due to high traffic. He turned to find alternative banking solutions by the following Monday.
In response to the crisis, U.S. authorities unveiled an emergency funding plan to safeguard depositors. Meanwhile, in the UK, the government facilitated the sale of SVB’s operations to HSBC to protect customers without taxpayer intervention. European officials reassured the public of SVB’s minimal footprint in the region, although market anxiety led to declines across Europe.
Rachael Crook, CEO of London’s Lifted, noted the extent of SVB’s ties to the startup ecosystem, causing panic among companies that had relied on the bank. She worked to reassure investors that essential services would remain uninterrupted.
Aleksandr Volodarsky, CEO of Ukrainian firm lemon.io, emphasized the urgency of the situation, having initiated a wire transfer just as the crisis unfolded. “We were fortunate to have paid our developers just two days prior,” he said, reflecting on the lessons learned about diversifying financial resources.
The SVB collapse has highlighted the vulnerabilities within the tech sector and prompted many leaders to rethink their banking strategies.
