Before the government stepped in, a generation of tech startups faced an existential crisis.
It was a harrowing 72 hours for the tech-startup community after Friday’s collapse of Silicon Valley Bank.
“It’s been a roller coaster of emotions,” said Varun Badhwar, CEO and co-founder of tech startup Endor Labs, explaining that he was able to get about $5 million of the company’s funds out of Silicon Valley Bank on Friday. “That gives us six to eight months of runway,” he told MarketWatch. For decades, those startups relied heavily on Silicon Valley Bank, a unit of SVB Financial Group SIVB based in Santa Clara, Calif., to process checks and payments and to safeguard their cash. The possibility of its implosion triggered a crisis that could have led to mass layoffs or to the collapse of hundreds of startups, according to Ahmad Thomas, CEO of the Silicon Valley Leadership Group.
Cassie Choi, co-founder and chief operating officer of Pair Team, a San Francisco-based administrative platform that streamlines operations in rural or understaffed medical clinics, was forced to pay out of pocket to keep payroll afloat. Her company cares for people with no access to healthcare.
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