Mar 14, 2023

Roblox, Buzzfeed, other companies affected by Silicon Valley Bank collapse SECTIONS Reuters Rate Story Synopsis Startup-focused lender SVB Financial Group last week became the largest bank to fail since the 2008 financial crisis, sending shockwaves through the global financial system and prompting regulators to step in to contain the fallout. AFP Startup-focused lender SVB Financial Group last week became the largest bank to fail since the 2008 financial crisis, sending shockwaves through the global financial system and prompting regulators to step in to contain the fallout. The collapse also raised concerns that rising interest rates could expose vulnerabilities in the global economy as a decades-long era of cheap money ends. Below is a list of companies across the globe that have their deposits with the bank: NORTH AMERICA Companies in the United States disclosed over $4 billion in deposits, besides various credit facilities, with the bank. ROBLOX ROKU The streaming devices maker says it has about $487 million, or 26% of its cash and cash equivalents, held in deposits with SVB. BUZZFEED The digital media firm said it had about $56 million in cash and cash equivalents at the end of 2022, majority of which was held at SVB. ACUITYADS HOLDINGS INC The Canada-based tech firm says it maintained U.S. bank accounts with SVB which amount to $55 million in deposits. APPLOVIN CORP The mobile app development firm says it had over $1 billion in cash and cash equivalents with less than $2 million at SVB as of March 10, adding it has no SVB-related credit facilities. ASTRA SPACE INC The rocket maker says its cash is held on deposit with SVB, with the amount representing about 15% of the company's current cash, cash equivalents and marketable securities, as of March 10. COHU INC The semiconductor products maker says it has deposit accounts with SVB with an aggregate balance of about $12.3 million, which is around 3.8% of the company's total cash and investments. ROCKET LAB USA INC The rocket maker says it had deposit accounts with SVB with an aggregate balance of about $38 million, or roughly 7.9% of the company's total cash and cash equivalents and marketable securities as of Dec. 31. LANTRONIX INC The networking product maker says it had deposits with SVB of about $6.7 million, representing around 85% of its total outstanding deposits, as of March 10. Lantronix adds exploring contingency options to fund its operations in the event it is unable to recover its deposits at SVB. ALKAMI TECHNOLOGY INC The digital banking solutions provider says it had deposit accounts with SVB with an aggregate balance of about $3.3 million, along with around $8.3 million in "sweep" accounts used by SVB to purchase external assets. STITCH FIX The online styling service firm says it anticipates that its $40 million credit line with SVB will not be available due to the bank's collapse. The line of credit was part of Stitch Fix's agreement of $100 million to be received by three lenders - SVB, JPMorgan Chase Bank and Citibank. CIRCLE U.S. cryptocurrency firm Circle says $3.3 billion of its $40 billion of USD Coin reserves are at SVB. BLOCKFI Bankrupt crypto lender BlockFi Inc has roughly $227 million in unprotected funds at SVB, the Wall Street Journal reported on Friday. PAYONEER GLOBAL INC The global payments provider says out of its roughly $6.4 billion in total cash balances as of Dec. 31, less than $20 million was held at SVB. LENDINGCLUB CORP The financial firm, which had $8 billion of total assets as of Feb. 28, says its relationship with SVB is limited to funds on deposit of $21 million, adding it does not pose a risk to the company's ongoing operations. VIR BIOTECHNOLOGY The biotech firm says it maintains operating accounts at SVB with about $220 million as of Friday. SUNRUN Residential solar company Sunrun Inc says it has cash deposits with SVB totaling nearly $80 million, while SVB's undrawn commitment in the non-recourse senior aggregation warehouse facility is about $40 million. SUNNOVA ENERGY INTERNATIONAL INC Sunnova's subsidiary is part of a credit facility where SVB serves as a lender, with unfunded commitments of $15 million under a Back-Leverage Facility. OAK STREET HEALTH INC The healthcare firm says SVB is lender for $300 million term loan credit facility along with Hercules Capital Inc, of which company has drawn $75 million. GINKGO BIOWORKS HOLDINGS INC The drug developer says cash balance of its subsidiary Zymergen Inc is held in deposit accounts at SVB, representing about $74 million of the company's cash and cash equivalents as of Dec. 31. ALPHATEC HOLDINGS INC The medical technology firm says it maintained deposit accounts with SVB of about $14 million that are used for its day-to-day operations. CYMABAY THERAPEUTICS INC The liver disease specialist says SVB was the commercial bank and investment portfolio manager of the company, and it had depository accounts at SVB in which it held about $6.3 million, as of March 13. EUROPE Around 16 tech and life sciences companies in Europe have disclosed about $190 million in exposure to SVB in the UK and the United States. TRUSTPILOT GROUP PLC The Danish firm, which runs a global review platform, says SVB UK was its principal banking partner, with $36 million held in the bank and $18 million is currently in transfer out of SVB UK but pending confirmation DIACEUTICS The technology and solutions provider to the pharma industry warns of material uncertainty over its ability to service its working capital in the short term. It had most of its 22.2 million pounds in cash in SVB accounts and tried to move its cash before SVB's closure but the transaction is pending DIANOMI The digital advertising services provider says about 3.8 million pounds was held across a variety of different currency accounts with SVB and SVBUK, and it is actively working to recover these deposits GLANTUS HOLDINGS The Ireland-based SaaS provider says it uses SVB for its U.S. operations and its maximum exposure is expected to only slightly exceed $250,000, which is insured by FDIC ZEALAND PHARMA The Danish drug developer has deposits totalling 162.6 million Danish crowns ($23.4 million) at SVB, which was about 15% of the group's liquid funds PHARMING GROUP NV The biopharmaceutical company says it has $26 million of deposits at SVB U.S., and expects to not bear any losses on these deposits KINNEVIK AB The Sweden-based investment firm says its pro rata share of SVB deposits amounts to less than $20 million RWS HOLDINGS PLC The intellectual property services provider says a small cash position held within SVB in U.S. is expected to be fully protected under Federal Deposit Insurance Corporation Scheme. It adds that SVB UK holds a portion of its forward currency contracts AUCTION TECHNOLOGY GROUP The UK-based technology company says it had a senior facilities arrangement with a syndicate of six banks of which SVB represents one sixth of the respective drawn and undrawn amounts on the facilities PCI-PAL The UK-based SaaS provider says it had about 3.2 million pounds of cash in accounts with SVB, its principal bank, split between the U.S. and the UK as of March 9 YOURGENE HEALTH PLC The molecular diagnostics company says it has a term loan facility with SVB UK and believes its SVB deposits are protected by relevant insurance schemes in UK and the U.S. WINDWARD LTD The British technology company says total exposure above the amounts protected by the Federal Deposit Insurance Corp Scheme and the Financial Services Compensation Scheme is less than 0.5% of the company's cash position of $22.2 million TECHNOPROBE SPA The Italian semiconductor and microelectronics firm says its exposure to SVB represents 2.5% of its cash and cash equivalent. A broker estimates this at about 10 million euros ($10.71 million) ALECTA The Swedish pension fund, an SVB shareholder since 2019, has around 1,200 billion Swedish crowns ($111.94 billion) in assets under management and says its total investment in SVB was just under 9 billion crowns. "For individual pension savers at Alecta, the impact of this investment on future occupational pension payments is very small," it adds. Alecta was SVB's fourth-biggest owner with a 4.45% stake on Dec. 31, according to Refinitiv. Alecta had also invested around 3 billion Swedish crowns in Signature Bank, which was closed just two days after the SVB collapse. ASIA-PACIFIC NITRO SOFTWARE Australia's productivity software maker Nitro Software Ltd said it had about $12.18 million of its global cash reserves held on deposit at SVB. Nitro, which is in process of being acquired by private equity firm Potentia Capital, said the development does not impact the takeover offer SEZZLE INC Australian buy-now-pay-later firm Sezzle Inc said it had about $1.2 million of its total cash and cash equivalents held at SVB, adding that funds on deposit with SVB are not material to its ongoing business or operations XERO LTD Australian accounting software maker Xero Ltd said it did not have a material exposure to SVB, with total exposure at $5 million as at March 10 LIFE360 INC Australian location-based services provider Life360 Inc said it estimated its exposure to be up to $5.6 million, with no significant disruption to operations KUWAIT FINANCE HOUSE The bank says it has $1.2 million exposure to SVB but has no material financial impact from the fallout. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Tuesday, 14 Mar, 2023