Washington – Silicon Valley Bank’s (SVB) announcement of bankruptcy in the US is the second-largest insolvency case of the bank since 2008. This has caused serious repercussions around the world. Silicon Valley Bank was the leading and the biggest lender to technology startups in various countries, including the US and UK. Israeli Prime Minister Benjamin Netanyahu has warned that the failure of the SVB is a sign of a major crisis, and many technology startups are likely to collapse with the bank.
Moreover, SVB, established in 1983, has nearly $175 billion stuck due to heavy losses reported by the bank a few days ago in the US bonds and other assets. To offset the losses, the bank decided to sell shares worth $22billion, which triggered a selloff in the market, causing the stock price to collapse sharply by 80% in just 24 hours. This was in conjunction with heavy withdrawal requests from the bank.
SVB is the leading financing bank for technology startups in the US and the UK. This has caused panic and concern for hundreds of startups around the world. With a leading startup ecosystem, Israel is feeling the heat of this. This has been confirmed by statements of Israeli prime Minister Benjamin Netanyahu raising concerns about a looming crisis for technology companies.
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