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With the collapse of Silicon Valley Bank, tech may lose a vital organ

By Richard Waters

11 Mar 2023 · 3 min read

Editor's Note

Richard Waters examines the financial implosion that struck Silicon Valley Bank, sending shockwaves through the tech industry. He warns of an “extinction-level event” for local tech start-ups.

The flood of cash into the tech start-up scene in recent years has led to persistent warnings of disaster. Most often, these have turned on the kind of meltdown that hit Silicon Valley at the turn of the century, when a stampede to make money on the early internet led to massive over-investment.

It’s safe to say, though, that none of the disaster scenarios envisaged the kind of financial implosion that struck this week at SVB Financial, the parent company of Silicon Valley Bank.

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