SVB UK holds $3bn in venture capital-backed company funding – survey
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LONDON (March 13): British start-ups backed by venture capital have around 2.5 billion pounds (RM13.6 billion), mostly deposits, “locked up” in Silicon Valley Bank’s UK subsidiary, according to a weekend survey by an industry body. . by Reuters.
The survey found that the total included more than 300 companies with accounts with SVB UK, and more than a third of them could face cash flow difficulties within a month if a solution is not found for the struggling lender.
Regulatory disclosures show that SVB had about $2.9 billion worth of loans at its UK arm and more than $1 billion in bonds at the end of last year. The total amount of deposits at the UK subsidiary is not yet known.
As well as their portfolio companies, venture capital and private equity funds are also clients of SVB UK, some of which are already withdrawing deposits, said a senior banker familiar with the matter.
SVB UK offers venture capital funds a short-term “capital call” facility, providing them with bridge financing before they receive cash from investors, the person said.
Lobby groups have called on British authorities to ensure tech companies retain access to cash.
British Prime Minister Rishi Sunak said the government was working hard to find a solution to limit the potential hit to companies from SVB’s collapse.
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