The failure of Silicon Valley Bank sent shockwaves through the tech financing universe. Roughly 1,000 firms, from big names such as Sequoia Capital, Andreessen Horowitz and Benchmark to key crypto and China tech investors, had disclosed that SVB was a custodian for their funds’ capital, according to data compiled by Castle Hall’s DiligenceExpress platform, which investors use to analyze regulatory filings.
The Federal Reserve Sunday guaranteed SVB’s depositors—including many of the firms—full access to the roughly $100 billion held at the now-shuttered bank. But these firms must find other banks to recreate the plumbing that had powered the firms’ dealmaking for years, from handling capital calls to providing loans and lines of credit for the cash-burning startups they backed.