Collapse of Silicon Valley Bank rocks China’s tech start-ups, venture capital industry

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The SVB failure raised concerns among venture capitalists and start-ups in China, which viewed the bank as an opportunity to access US capital.

has created a sense of panic within China’s tech start-up and venture capital sector, as the lender served as a bridge between US capital and Chinese tech entrepreneurs.

“The collapse of SVB has lowered the trust of Chinese companies in foreign banks, so they will be more cautious when considering US dollar funds,” said Fu Jian, director of Henan Zejin Law Firm. The denial came after talks circulated online that Wang Xing, co-founder and chief executive of Meituan, had showcased the company’s US$60 million deposit at SVB at a media briefing years ago, when the company secured a B-round financing in 2011.

“SVB’s customer base is mainly scientific and technological innovation enterprises, which are very sensitive to liquidity and technology cycles,” said China International Capital Corporation, the state-owned investment bank, in a report published on Sunday. It added that the impact should not be “underestimated” since other banks have “similar risk exposures” as theMeanwhile, some analysts said that the impact could be limited in China, given the scope of Chinese tech start-ups.

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and fed/treasury's bailout helps china's tech start-ups :D

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UK finance minister, Bank of England work to contain Silicon Valley Bank falloutTalks are scheduled to discuss the issues faced by British tech companies affected by the SVB collapse. Read more at straitstimes.com.
Source: STForeignDesk - 🏆 4. / 71 Read more »