What founders can learn from the failure of Silicon Valley Bank

Silicon Valley Bank

After the collapse of the bank, which is also popular with German start-ups, venture capital experts advise young companies to use more effective risk management.

(Photo: Reuters)

Berlin, Dusseldorf On Monday, start-ups in the USA, Great Britain and Germany felt that they had gotten off lightly. The US authorities guarantee customers of the insolvent Silicon Valley Bank (SVB) access to all deposits, and in Great Britain the major bank HSBC is buying the British subsidiary.

A collapse is thus averted. But start-ups and venture capitalists know that it was more luck than good management that saved many companies. The start-ups are learning the first lessons from their heavy dependence on Silicon Valley Bank.

Experts have three particularly important pieces of advice that start-ups should pay more attention to in the future:

1. Spread money across multiple banks

Many companies were on the verge of bankruptcy at the weekend because they could no longer have paid salaries this week after the closure of their house bank SVB. Start-up financiers want to avoid such dangers in the future.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Further

Read on now

Get access to this and every other article in the

web and in our app.

Further

source site-11