HomeBusiness/EconomyAccording To A Poll, SVB UK Has $3 Billion In Funds For...

According To A Poll, SVB UK Has $3 Billion In Funds For Venture Capital-Backed Companies

According to a weekend study by an industry organisation seen by Reuters, British start-ups supported by venture capital have almost 2.5 billion pounds ($3 billion), primarily in deposits, “locked” in Silicon Valley Bank’s UK affiliate.

More than 300 businesses have accounts with SVB UK in total; the poll indicated that more than a third of these businesses run the risk of experiencing cash flow issues within a month if a fix is not found for the struggling lender.

According to regulatory reports, SVB’s UK affiliate had loans totaling about $2.9 billion and more than $1 billion in bonds at the end of the previous year. Unknown is the entire amount of deposits at the British subsidiary.

Customers of SVB UK in addition to their portfolio firms include venture capital and private equity funds, some of which have been withdrawing deposits, according to a senior banker with knowledge of the situation.

According to that person, SVB UK provides venture capital firms with short-term “capital call” capabilities that act as a bridge loan until they get funding from their investors.

The British government has being urged by lobbying groups to guarantee that tech companies have access to funding.
According to British Prime Minister Rishi Sunak, the government is trying to find a way to lessen the possible blow to businesses caused by SVB’s dissolution. (1 dollar = 0.8301 pounds)

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