Silicon Valley Bank (SVB), regarded as a major lender for venture capital-backed firms, especially for tech start-ups, was seized by California banking regulators on Friday. The Federal Deposit Insurance Corporation (FDIC) in its order said that the move is aimed “to protect insured depositors”. The closing of SVB is seen as a major bank failure since Washington Mutual during the height of the 2008 financial crisis. The failure of SVB has heightened the worries among depositors of the bank. News agency Reuters has compiled a list of firms that have deposits with SVB.
According to the report, North American firms in the US have reported over $4 billion in deposits, besides various credit facilities. This includes firms from the online gaming sector to rocket makers.
- Roblox, an online gaming firm, has about 5 per cent of its $3 billion cash and securities balance held with the Bank as of February 28, the report said.
- Buzzfeed, a digital media company, has major of its $56 million held with the SVB.
- Roku, a streaming devices maker, told the news agency that it has about $487 million, or 26 per cent of its cash and cash equivalents, held in deposits with SVB.
- AcuityAds Holdings Inc, a Canadian tech firm, has $55 million in deposits in SVB.
- US app developer AppLovin told Reuters that it had less than $2 million in deposits in SVB as of March 10.
- Cohu Inc, a semiconductor products maker says it has deposit accounts with SVB with an aggregate balance of about $12.3 million, which is around 3.8 per cent of the company’s total cash and investments.
- Astra Space Inc, an aerospace firm said that 15 per cent of its total cash deposits were held with SVB as of March 10.
- Another rocket maker Rocket Lab USA Inc said it had deposit accounts with SVB with an aggregate balance of about $38 million as of December 31.
- US crypto firm Circle had $3.3 billion of its $40 billion USD Coin reserves at SVB.
- BlockFi Inc, a bankrupt crypto lender, had roughly $227 million in unprotected funds at SVB.
- Payoneer Global Inc, a global payments provider told the news agency that less than $20 million was held at SVB.
- LendingClub Corp, a financial firm, said that it had $21 million in deposits in SVB.
- Sunrun Inc, a solar company, had nearly $80 million in cash deposits with SVB.
The report also said that around 16 tech and life sciences companies in Europe have disclosed about $190 million in exposure to SVB in the UK and the United States. This includes Trustpilot Group plc ($36 million), Diaceutics ( £22.2 milion), Dianomi ( £3.8million), Pharming Group N.V. ($26 million), Kinnevik AB ($20 million), PCI-PAL (£3.2 million), and Technoprobe SPA ($10.71 million) among others.
Alecta, the Swedish pension fund which has around 1,200 billion Swedish crowns ($111.94 billion) in assets under management, said that its total investment in SVB was just under 9 billion crowns.
“For individual pension savers at Alecta, the impact of this investment on future occupational pension payments is very small,” it adds. Alecta was SVB’s fourth-biggest owner with a 4.45 per cent stake as of December 31, the report said.
Several Australian firms have also disclosed their exposure to SVB, including, Nitro Software Ltd ($12.18 million), Sezzle Inc ( $1.2 million), Xero Ltd ($5 million), and Life360 Inc ($5.6 million).
Kuwait Finance House, a state-owned bank in Kuwait told Reuters that it has $1.2 million exposure to SVB but has no material financial impact from the fallout.