The collapse of Silicon Valley Bank has stripped the Bay Area’s startup industry — a key driver of the region’s economy — of a crucial source of funding that for decades has fueled innovation and growth.
“The failure of Silicon Valley Bank leaves an enormous void,” said Ahmad Thomas, CEO of the Silicon Valley Leadership Group, a business-backed policy and advocacy organization. “Looking at their role in lending to startups, where funding wasn’t otherwise available, this has driven economic growth here for 40 years.”
The startup-focused institution headquartered in Santa Clara imploded Friday after a bank run sparked by news of losses in its investments. The California Department of Financial Protection and Innovation shut the bank down and appointed the Federal Deposit Insurance Corporation as receiver to hold its assets for future sale.
