Hundreds of startups face crippling cash crunch if no one buys SVB

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

Finance Finance Headlines News

Hundreds of startups face a crippling cash crunch and an 'extinction-level event' if no one buys Silicon Valley Bank by Monday

, startup accelerator Y Combinator's CEO Garry Tan said SVB's collapse was"an *extinction level event* for startups and will set startups and innovation back by 10 years or more." that a survey Friday of its 3,000-odd active companies found almost 400 had a relationship with SVB and more than 100 feared they couldn't make payroll in the next 30 days unless the situation was swiftly resolved. Tan urged people to contact their member of Congress to voice their concern.

These startups' best hope is for a buyer for SVB to be found before markets reopen Monday. If no one wants it, the FDIC will to liquidate the bank and sell off its assets to try to make depositors whole again. "The FDIC will love to have the bank bought off their hands, and I am sure they will work furiously over the weekend to arrange a shotgun marriage," said Sandeep Dahiya, associate professor of finance at Georgetown University's McDonough School of Business,

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Who are the startups: dudes with money or the right connections to get the funding. Smarter people with brighter ideas but without the right money or connections don't stand a chance in nowadays America. So nope, I won't cry rivers for the startups ...

But on the upside, you can now buy USD with a 40% discount 🙃

how much did the pandemic have to do with this. Serious question!

comeonandfarce

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

SVB Financial bonds sink to 31 cents on the dollar after failure of Silicon Valley BankHeavy trading in SVB Financial debt push its 10-year bonds as low as 31 cents on the dollar on Friday after the failure of its subsidiary Silicon Valley... Yikes
Source: MarketWatch - 🏆 3. / 97 Read more »