Commenting on news of Silicon Valley Bank’s collapse, Charles Fletcher, Partner at Mishcon de Reya, said:
“The collapse of Silicon Valley Bank – and subsequent rescue of the UK arm by HSBC – has important lessons for any start-up.
Emerging tech companies are vital for the nation’s continued economic prosperity. We work with businesses from across the emerging company and venture capital community. In our experience, there are simple, practical steps to financial management that businesses can take to minimise the uncertainty and stress many have experienced over the weekend.
Key actions include keeping corporate accounts with more than one bank, having an emergency funding plan to avoid cashflow squeezes, separating funds from different sources and taking a strategic approach to managing currencies. These should accompany fundamental business planning and management steps, such as a detailed risk register and crisis management protocols.”