The number of companies and investors that had accounts in Silicon Valley continues to be revealed.
Countless companies and investors have revealed that they had accounts at Silicon Valley Bank, the failed financial institution that was shut down by a regulator.
Legendary investor and entrepreneur Mark Cuban says he has an exposure of between $8 million and $10 million to the California bank that was shut down after a massive run on the bank.
DON’T MISS: SVB Collapse: Small Businesses Caught in Bank Shutdown
“I’m only exposed to maybe $8 to $10 million,” the Shark Tank star said during a Twitter Spaces on March 11. “CostsPlus Drugs.com deals with SVB. So, I think we had $3.1 million there.”
CostPlus Drugs.com is an online pharmacy that the billionaire co-founded in January 2022 to disrupt Big Pharma. The platform is the only company he has founded or invested in that bears his name. The official name of the company is Mark Cuban CostPlus Drug Co.
Numerous non-tech companies were also affected when the FDIC took over Silicon Valley Bank on March 10 after a run on their deposits after losing $1.8 billion in bond investments and failing to attract new capital to shore up their liquidity. .
Etsy suspends deposits
Vox Media, which publishes The Verge, SB Nation, Recode and New York Magazine, had a “substantial concentration” of cash in Silicon Valley Bank, a source told the outlet. New York Times.
A request for comment from Vox Media and Penske Media, its largest shareholder that owns Variety, Billboard and Rolling Stone, was not immediately returned.
Penske Media said in a statement that it was prepared if Vox Media needed capital for its operations, but did not expect there to be a problem, according to the New York Times.
With the FDIC only insuring $250,000 in deposits, SVB customers are worried about the rest of the cash in the bank, as dozens of businesses said they were unable to process their payroll on March 10 or transfer their money to another bank.
E-commerce company Etsy (etsy) – Get a free reportwhich sells products made by its customers, sent an email stating that scheduled deposits would be stopped.
“This delay was caused by recent developments related to Silicon Valley Bank,” the email to Etsy sellers said, “whom Etsy uses to facilitate disbursement for some sellers. We are working with our other payment partners to issue their deposit as soon as possible. .”
Streaming company Roku (YEAR) – Get a free reportdisclosed Friday that it holds 26% of its total cash and cash equivalents in Silicon Valley Bank, which was shut down by the FDIC.
Roku said it had $487 million in cash out of a total of S$1.9 billion in uninsured deposits at SVB that was placed in federal receivership on Friday, according to an SEC. presentation.
The company said that since it has another $1.4 billion in cash reserves “at multiple large financial institutions,” Roku’s “existing balance of cash and cash equivalents and cash flow from operations will be sufficient to meet its working capital, capital expenditures and material cash requirements”. of known contractual obligations for the next twelve months and beyond”.
Crypto Firm Circle Has $3.3 Billion Locked Up
Crypto firm Circle, which is the issuer of the USDC cryptocurrency, had $3.3 billion in deposits with the failed bank, while bankrupt crypto lender BlockFi had left $227 million through a money market mutual fund, the trustee for USA in a court filing on March 10.
Rocket Lab USA space company (RKLB) – Get a free report said in an SEC filing that it held $38 million in cash or 7.9% of its cash as of December 31 with SVB. The company had no other comment in the filing and did not address where the rest of its cash was kept.
Roblox (RBLX) – Get a free reporta gaming platform company, said 5% of its $3 billion in cash was in the failed bank. according to a presentation.
Video platform company Vimeo (VMEO) – Get a free report He said his account balance was below the $250,000 threshold.
“Therefore, the company believes that it has no exposure to any liquidity problems at SVB,” the company said in a statement. “The company has a diverse and well-structured set of banking partners with no one bank holding more than 25% of its total cash.”
Sports broadcasting company Fubo (FUBO) – Get a free report he said that he “does not have any deposit in SVB nor does he have any other direct investment in SVB.”
A Boston-based middle-market real estate and forestry management company, LandVest, is one of thousands of non-tech companies whose accounts were affected by the Silicon Valley Bank failure.
While SVB was well known among venture capitalists and the tech companies they financed, the bank had also acquired Boston Private Bank & Trust Company in 2021, whose clients ranged from small and medium-sized businesses to nonprofits across various industries.
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For the past 40 years, Landvest has banked with Boston Private and stayed with the bank after SVB acquired it, Joseph Taggart, LandVest’s president, told TheStreet. Landvest’s office was next door to the Boston Private headquarters.
Taggart said he was able to transfer some of SVB’s company cash into one of his existing bank accounts on March 9. But the company did not transfer all its cash to another bank because they planned to pay the payroll on March 10.
“There were a lot of accounts that we had to keep active because we’re doing business all the time for vendors or payroll,” he said. “We had to sit down and cross our fingers and see if that transaction would go through.”
Other companies were not so lucky and their business was affected by the closure of SVB.
Parker Conrad, CEO of Rippling, a payroll processing company, said in a tweet that they were unable to handle payroll for all of their clients on March 10.
Elizabeth Yin, co-founder of Hustle Fund, a venture capital fund that invests in pre-seed software startups, said several of the founders were also unable to make payroll on March 10.
“A # of my founders whose connections were blocked and have over $250K in their svb accounts are worried about making payroll today, next week and beyond,” he tweeted. “Many of them are willing to personally accept a $0 salary, but it’s the employees and contractors who will be disproportionately affected.”
New York toy company Camp has taken an unusual and creative route to drive more sales since the company’s CEO, Ben Kaufman, emailed customers for help. He ignored a serious situation and told customers to use the promo code “BANKRUN.”
The company said in an email that most of its cash was at SVB and that the proceeds from the purchases would be deposited with Chase.
