Silicon Valley Bank collapse sends shivers down biotech spines

On 10 March, Silicon Valley Bank (SVB), a popular bank with venture capital (VC)-backed technology and biotech firms, collapsed. Shockwaves spread across biotech companies, the banking sector and beyond. SVB was already in trouble: the tough fundraising environment for biotech and tech firms meant SVB’s deposits had fallen, while rising interest rates were wreaking havoc with its investments. When those challenges became public, SVB’s shares fell and anxious depositors, including VC firms, began pulling their cash. What resulted was one of the fastest, and largest, bank runs in history. It spread to other regional banks — Signature Bank failed, and San Francisco-based First Republic Bank is still on the rocks — and then to a much bigger one, Credit Suisse.

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