The collapse of Silicon Valley Bank has raised eyebrows not just because it was a large, publicly traded company, but also because Roku and other startups have sizable amounts of cash tied up with the bank. While this doesn’t necessarily mean that the banks are responsible for the failures of SVB (and similar institutions), it casts doubt on how well these companies will be able to recover from this issue.
This news comes as a shock to many Roku users, as the company had previously stated that it would be able to cover its requirements through its cash on hand. It seems that this statement may not have been entirely accurate, and unless something drastic happens in the next twelve months, Roku may have to turn to outside sources for funding.
Roblox anticipates a better future with the pending partnership with Best Buy and advertising business, but investors are concerned that the current economic climate will dampen its growth.
Roblox has stated that approximately 5% of its $3 billion cash and securities balance is held at SVB. This could potentially indicate that the company is optimistic about their future relationship with the bank, as they have substantial funds available to them. Roblox may be looking to increase their investment in the platform in the near future, which would likely benefit both parties.
Despite the ongoing economic uncertainty, Roblox maintained its momentum, announcing that it had been upgraded by Jefferies analyst Andrew Uerkwitz to a buy. The platform’s ability to continue to grow despite near-term concerns over the economy demonstrates Roblox’s resilience and stability in today’s challenging market conditions.
The tech industry has been rocked by the news of the failure of one of its largest banks, and the ramifications this could have on brand-name companies. The updates reveal just how closely connected the bank was with both tech firms and the broader community, and underscore just how critical its closure will be for many businesses.
As Quotient disclosed in its Form 8-K filed with the SEC on Tuesday, its subsidiary Silicon Valley Bank UK Limited (SVB) held million at SVB as of June 30th. This may raise eyebrows considering that both Roku and Robox were implicated in a recent data breach that affected an estimated million people. While it is unclear if this breach was related, the fact that Quotient owns an investment in an entity potentially impacted by such a security incident sets off all sorts of warning bells for investors and demands more transparency from these companies about their cyber resilience.
Rocket Lab USA revealed that it has a large amount of cash on hand and is looking to invest in new projects in the near future. The company plans to use its cash to bolster its already ambitious commercial satellite launch program as well as pursue other innovative endeavors. This good news marks a shift for Rocket Lab, which previously suffered from financial struggles. By having such a sizeable war chest, Rocket Lab will be able to keep launching valuable payloads into
Vimeo is relatively small when compared to other companies with FDIC insurance, but it’s confident that it doesn’t have any problems with its banking partners at SVB. This is likely due to its diverse set of banking partners and the fact that SVB holds less than $250,000 worth of Vimeo’s cash.
Some other companies have been posting to social media and disclosing in filings to assure investors they were not exposed. These disclosures have helped reassure investors that the companies were not impacted by the data breach.
These revelations further diminish SoFi’s already diminished reputation and may have hampered its ability to compete in the current market. Although the company maintains that it has no assets with SVB, this does not exclude any potential liabilities that SoFi might have incurred. For instance, if there are any loans or partnerships between Silicon Valley Bank and SoFi that were not disclosed prior to receivership, these could become problematic now that they have been exposed. Additionally, in light of the FDIC’s receivership of Silicon Valley Bank, many consumers may be hesitant to do business with SoFi due to its increased exposure to risk.
The news that Streaming Service fuboTV does not have any investments with Swedish SVB bank, could mean several things. The first being that the company is not too big to fail and could go under easily if they lose their investment. Another possibility is that fuboTV isn’t too interested in Sweden as a market for their streaming service and has instead chosen other, more lucrative markets.
Many depositors were alarmed on Friday when news spread that SVB was facing closure. Many had placed their trust in the bank, and now faced the prospect of losing all their money. The FDIC clarified on Sunday that insured deposits will still be accessible no later than Monday morning, which should help calm worried depositors.