Silicon Valley Bank collapse hits startups as far away as China
Publishing timestamp: 2023-03-13 06:53:49
Summary
U.S. regulators have shut down Silicon Valley Bank, which was popular with tech startups, including those based in China and backed by U.S. venture capitalists. The bank's online system for opening accounts allowed the use of Chinese mobile numbers for verification, which has had ripple effects on Chinese startups, particularly those backed by U.S. dollar-denominated funds. The bank's closure has harmed the tech industry as there is no other bank that provides the same features, such as speedy account opening for startups and visibility for venture capitalists. Many China-based startups with U.S. VC funding have tended to start off with bank accounts at Silicon Valley Bank.
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Source: https://www.cnbc.com/2023/03/13/silicon-valley-bank-collapse-hits-startups-as-far-away-as-china.html