London British start-ups backed by venture capital have about 2.5 billion pounds ($3 billion) “locked up,” mainly in a UK subsidiary of Silicon Valley Bank, according to a weekend survey by an industry body seen by Reuters. ” Is.
The total includes more than 300 companies with accounts at SVB UK, of which more than a third are at risk of running into cash-flow difficulty within a month if a solution is not found for the ailing lender, the survey found.
Regulatory disclosures show SVB had about $2.9 billion in loans in its UK branch at the end of last year, as well as more than $1 billion in bonds. The total amount deposited in the British subsidiary is not clear.
A senior banker familiar with the matter said that apart from their portfolio companies, venture capital and private equity funds are also clients of SVB UK, some of which are pulling deposits.
The person said SVB provides short-term “capital call” facilities for UK venture capital funds, providing them with bridge financing before receiving cash from their investors.
Lobby groups have called on British authorities to ensure that tech companies maintain access to cash.
British Prime Minister Rishi Sunak has said that the government is working to find a solution to limit the potential damage to companies from the closure of SVB.
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