Uncertainty for Enterprise IT. – The temporary collapse of SVB went well beyond investor deposits and federal regulators. Challenging management and investment decisions and the rise in interest rates also contributed to the bank’s financial demise. The true impact of this event strikes at the core of technology innovation, including the capital, IPO funding, and other organizational resources tech startups require to deliver their solutions to their investors and prospective clients. With SVB’s financial challenges, even with the Fed stepping in, many in the tech space still question how future funding will impact their capital needs.
Smaller vendors leveraged SVB to help establish relations with major companies. SVB leveraged many internal and external connections to help start-ups with talent recruitment, IPO advice, and access to capital. In the future, technology startups will perform more extensive due diligence regarding banking partnerships and the placement of their capital.