Business NewsSVB’s Failure Exposes Lurking Systemic Risk of Tech’s Money Machine
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SVB’s Failure Exposes Lurking Systemic Risk of Tech’s Money Machine
Many private equity and venture capital firms found themselves facing the same counterparty risk, creating a frenetic weekend before federal intervention.
The Silicon Valley Bank office in New York, US, on Friday, March 10, 2023. Silicon Valley Bank became the biggest US bank failure in more than a decade, after its long-established customer base of tech startups grew worried and yanked deposits.
(Bloomberg) -- The collapse of Silicon Valley Bank has prompted a global reckoning at venture capital and private equity firms, which found themselves suddenly exposed all together to the tech industry’s money machine.