SVB has been bought by HSBC

Like many of you, we are very concerned about the collapse of Silicon Valley Bank in the US and notably the current insolvency procedures underway for SVB bank operations here in the UK. We are deeply aware that this has implications for many of the start-up and early-stage businesses that our community is backing across the UK. 

After working closely with Government, our partners and founders over the weekend to address these issues, we are all relieved to receive the announcement early this morning that HSBC has taken over SVB UK. We hope that this means that all of our tech community are now in a position to access their deposits and accounts as normal this morning, however there may be some early technical issues to be addressed.

Find out more at: https://www.gov.uk/government/news/government-and-bank-of-england-facilitate-sale-of-silicon-valley-bank-uk

We would like to thank all of you for your support in providing data and feedback which was extremely useful in supporting HMT’s actions and helped to outline the scale of the potential fallout:

  • 161 businesses submitted their details, 131 of which provided useable data
  • Of which 50 have a female founder or co-founder and 48 have a founder or co-founder from an ethnically diverse background
  • A total of £452m is considered at risk by those founders, a Median of £600k, Mean of £3.4m per founder
  • They are burning a total of £35m in cash each month, a median of £100k
  • A median of 6.5 months of runway is currently at risk
  • 35% do not have access to any other banking facilities, 61% do have access to other banking facilities

We will keep you updated with any further developments and hope all goes smoothly but do keep us informed of any challenges or issues that you are encountering, you can email us at svb@ukbaa.org.uk.

We hope that our tech investors and the tech innovators that they are backing across the UK can now get back as soon as possible to doing the great work they have been doing to support our economy.

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By UKBAA 13 Mar 2023