Effects of Silicon Valley Bank Collapse on World Economy

Although the global consequences of Silicon Valley Bank's collapse may be just beginning to emerge, one thing is certain that all tech startups, regardless of distance, are interconnected. Many depend on one mid-sized bank to manage their day-today operations. 

Financial hubs around the world are being affected by the collapse of Silicon Valley Bank. China, India and the UK are just a few of the countries that are trying to protect their economies from the collapse of US's 16th largest Bank.

The UK Treasury declared on March 13, that HSBC had acquired the UK arm of SVB for only £1 ($1.21), as financial hubs around the world try to mitigate the effects of the lender's multibillion-dollar collapse.

According to Peter Routledge, Canada's financial superintende, SVB's branch was seized by Canadian bank regulators to protect its creditors. AcuityAds, a Toronto-based ad tech company, has revealed that nearly all its cash, which totalled $55 millions, was held in SVB.

According to a report, more than 60 Indian startups backed by US startup accelerator Y Combinator have more than $250,000 in SVB. More than a dozen others have over $1 million.

Benjamin Netanyahu, the Israeli prime minister, has pledged to conduct damage assessments. Globes, a domestic business paper, said that SVB's collapse was similar to "closing off the oxygen pipe" for the Israeli tech sector which has close ties with Silicon Valley. 

Many Chinese companies, including those in the biotech industry, are trying to calm down worried investors. BeiGene, a Chinese firm that is renowned for its research on cancer treatment, announced almost 4% of its cash about $175 million is being frozen in SVB.