Following the acquisition by HSBC of Silicon Valley Bank UK, founders and CEO’s have shared their thoughts with IFA Magazine.
Tom Britton, Co-founder, SyndicateRoom: “While our own portfolio is minimally exposed to SVB, the ripples will be felt across the UK tech ecosystem. The irony is that focus and good communication are drilled into startups from early on, but the bank built around startups seems to have failed on both accounts.”
Rob Cossins, CEO of AI-powered data platform, Scribe: “HSBC acquiring SVB UK is an excellent outcome for the UK tech ecosystem. Many UK technology companies were faced with existential risk, so I’m glad that all the relevant stakeholders appreciated the importance of protecting deposit-holders in the UK’s most innovative sector. Founders that were looking unable to pay wage bills this week are now protected and thousands of jobs have been saved.”
Jukka Väänänen, CEO of the free PR platform, Newspage: “A crisis appears to be averted, for now. The tech sector is in a precarious position, though, and it would be naive to think that SVB UK is the only tech bank affected by interest rate hikes. Questions are once again being raised about risk management in the banking sector. SVB’s collapse will have upped the fear quotient among tech and startup companies, and fear inhibits growth, which is what the economy needs desperately right now.”