International investors: Silicon Valley Bank may affect 80% of VC support enterprises if there is no rescue

It is reported that after the bank of Silicon Valley announced its bankruptcy in a flash on March 10, it triggered a severe shock in the capital market. Investors are paying high attention to the possible chain reaction caused by the event. Lise Buyer, a senior adviser to the US IPO and founding partner of Class V Group, said that if the Silicon Valley Bank could not be rescued at the weekend, 80% of the startups supported by venture capital would be affected to varying degrees. Relevant regulatory filing documents show that as of December last year, more than 95% of deposits in Silicon Valley banks had not been insured, and many of these depositors were start-up companies. The market is worried that because enterprises may not be able to pay wages this month, this will in turn trigger a wave of large-scale closures and layoffs in the technology industry. (I)

Interpretation of this information:

The message reports on the bankruptcy of the Bank of Silicon Valley and its potential impact on the capital market. The announcement has caused concern among investors, who fear a chain reaction in the industry. Buyer, an IPO adviser, warns that if the bank cannot be rescued, startup companies supported by venture capital may be affected, potentially leading to closures and layoffs in the technology industry. Regulatory filings show that a majority of deposits in the bank were not insured, and many of these depositors were startups. This revelation has compounded fears about the potential fallout from the bank’s bankruptcy.