Bank Failure Impacts Health-Tech Startups
The failure of Silicon Valley Bank sent many health care technology startups scrambling. It did business with about half of the nation's tech and biotech companies, says Stat.
Modern Healthcare:
Silicon Valley Bank Failure Could Impact Digital Health Investments
The Federal Deposit Insurance Corporation's decision to take over Silicon Valley Bank on Friday is likely to leave many digital health companies scrambling to pay employees and suppliers. SVB, the nation's 16th largest bank and headquartered in Santa Clara, California, was a big bank for tech companies, startups and venture capital firms. The bank said on its website that it had $78.8 billion in healthcare deposits and investments as of December. (Turner, 3/10)
Stat:
SVB, Biotech’s Bank Of Choice, Just Failed. It May Have Ripple Effects
Silicon Valley Bank, which does business with roughly half of the nation’s tech and biotech companies, failed on Friday. Now, as federal regulators step in to clean up SVB’s mess, biotech startups are left wondering: What happens to their money, and who’s going to finance the industry? (Feuerstein, Garde and DeAngelis, 3/10)
Crunchbase:
Silicon Valley Bank Bet Big On Biotech. And Now It’s Gone.
Silicon Valley Bank, the prominent startup and venture capital bank that was abruptly taken over by regulators Friday, had made big bets on the biotech space in recent years, and its sudden downfall leaves life sciences companies particularly vulnerable. The main concern is whether or not early-stage biotech companies that banked with SVB will be able to access their cash. With no cash flow, nascent pharmaceutical startups rely on their cash reserves to fund drug development. (Vedantam, 3/10)
