Companies That Deposited and Invested in Silicon Valley Bank: Will They Be Affected?

The United States (US) bank, Silicon Valley Bank (SVB), went bankrupt after experiencing a capital crisis on Friday, March 11, 2023. SVB is now under the control of regulators.

The bank, which focuses on funding startups, is reported by CNN to have encountered problems due to a "rush money" event—a large-scale, simultaneous withdrawal of cash from the bank by the public.

Furthermore, SVB was also weakened by the US Federal Reserve's policy of raising interest rates to curb inflation, a policy in place since last year. The aggressive interest rate hikes have led to soaring borrowing costs, weakening the momentum of technology stock increases.

The collapse of SVB has impacted the global economy. Established in 1983, the bank held deposits and various investment instruments for large companies and global startups.

According to Reuters, several companies had deposits and investments in SVB. The list includes:

1. North America: This company reportedly had US$5 billion in deposits, in addition to various credit facilities with SVB.

2. Roblox: This online gaming company stated that approximately 5% of its cash and securities balance, or US$150 million out of US$3 billion, was deposited in SVB as of February 28, 2023.

3. Roku: This streaming application startup had approximately US$487 million in deposits, equivalent to 26% of the company's cash and cash equivalents.

4. Ginkgo Bioworks Holdings Inc: This drug developer, through its subsidiary Zymergen Inc., had approximately US$74 million in deposits with SVB, from the company's cash and cash equivalents as of December 31, 2022.

5. Sunlight Financial Holding Inc: This solar power financing provider reportedly had US$64 million of its company cash in SVB as of March 10, 2023.

6. Buzzfeed: This digital media company held US$56 million in cash and cash equivalents at the end of 2022. Reuters did not specify the exact amount, but reported that a significant portion was deposited in SVB.

7. Acuityads Holdings Inc: This Canadian startup managed US$55 million in deposits with SVB.

8. Rocket Lab USA: This rocket manufacturer is believed to have had a deposit account with a cumulative balance of approximately US$38 million. This represents 7.9% of the total cash and cash equivalents, and securities, held as of December 31, 2022.

9. Cohu Inc: This semiconductor manufacturer reportedly had a deposit account with a balance of approximately US$12.3 million. This is equivalent to 3.8% of the company's total cash and investments.

10. Alkami Technology: This digital banking consultant had aggregate deposits of US$3.3 million, along with approximately US$8.3 million in "sweep" accounts used by SVB to purchase external assets. Alkami's total entitlement amounted to US$11.6 million.

(See also: Silicon Valley Bank Collapse Ranks Among Top 10 Largest Bankruptcies in the US)