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Israel startups panic after Silicon Valley Bank collapse

March 13, 2023 at 11:34 am

In this photo illustration, logo of SVB (Silicon Valley Bank) is displayed on mobile phone screen in front of American Flag in Washington DC, United States on March 11, 2023. [Celal Güneş – Anadolu Agency]

Over 100 Israeli startups have gone into a state of panic following the collapse of the Silicon Valley Bank Financial Group, the biggest lender to startups in Israel and the United States, the Israel’s Calcalist business newspaper reported.

Israeli shares slumped yesterday as a result of the bank’s collapse. The assets of SVB are estimated at about $210 billion and it is the largest bank to fail since the 2008 financial crisis.

On Friday, the SVB collapsed due to a significant increase in interest rates and the decline in interest in the tech market, forcing the Federal Deposit Insurance Corporation (FDIC) to seize its assets.

The SVB collapse comes as Israel is embroiled in mass protests against a judicial reform proposal put forward by the government of Prime Minister Benjamin Netanyahu, which – according to economists – could drive away investments and negatively impact the economy.

READ: Israel tech firm to move $500m to foreign banks