Silicon Valley Bank collapse: Which companies have exposure to failed US bank? What we know so far

The fall of the Silicon Valley Bank (SVB) has brought back memories of the disastrous financial crisis of 2008. The SVB is the second biggest US financial institution to have failed in history. The now failed bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits as of December 31, 2022.

The tech lender's collapse has left several startups and tech firms in the US, globally and also in India who have exposure to SVB’s investments worried about their funds. As per recent data from market intelligence platform Tracxn, SVB had exposure in at least 21 startups in India. The size of investments and exact details of these startups were not mentioned.

SVB was the bank to over 2,500 venture capital firms which includes the likes of Lightspeed, Bain Capital and Insight Partners, as per The New York Times. SVB also managed the personal wealth of several tech executives. 

Companies who are known to have money deposited with the bank include: 

- Video-streaming giant Roku
- Workplace safety analytics startup CompScience
- Semiconductor firm Ambarella
- Digital gaming platform Roblox
- Financial services company LendingClub
- Solar firms Sunnova and Sunrun
- Space company Rocket Lab
- Video platform Vimeo
- AI company Stem
- Several pharmaceutical firms including Sangamo Therapeutics, Repare Therapeutics, X4 Pharmaceuticals, Protagonist Therapeutics, Eiger Biopharmaceuticals, Oncorus.
- Numerous cryptocurrency firms including BlockFi, Circle, Pantera, Avalanche, Yuga Labs, Proof, Nova Labs
- Exchange trading funds including SPDR S&P Regional Banking, SPBR S&P Bank, iShares US Regional Banks, Invesco KBW Bank, iShares Evolved US Financials, Invesco S&P 500 Equal Weight Financials, John Hancock Multifactor Financials, First Trust Nasdaq Bank, First Trust Financials AlphaDEX Fund and Financial Select Sector SPDR Fund.

What will happen to the money exposed to SVB?

The California regulator which shut down Silicon Valley Bank has said that all insured depositors will have full access to their insured deposits no later than Monday, March 13, 2023. “Deposits of up to $250,000 were insured by the regulator. Beyond that, customers have received no information on when they will regain access to their money," it was reported.

The regulators have put SVB under the control of the US Federal Deposit Insurance Corporation (FDIC). It is acting as a receiver. This typically means that it will liquidate SVB’s assets to pay back its customers, including depositors and creditors.

Uninsured depositors will be paid an advance dividend by the FDIC within the next week They will receive a receivership certificate for the remainder of the uninsured funds. Future dividend payments will be made to these uninsured depositors as the FDIC sells SVB’s assets. 

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(With inputs from agencies)