the collapse of Silicon Valley Bank (SVB)) may seem somewhat irrelevant considering that, a priori, it only affects 1% of the large technology companies in California. The closure of the bank, however, is also hurting —and considerably— small companies in the United States and Spanish startups. The managers of these companies assure that the situation is causing the financial future of their businesses, that of their teams, and even that of their families, to be on the brink of collapse.
Miguel Carranza, one of the founders of RevenueCat, a startup aimed at offering developers a management tool to include subscriptions within their apps, states in a tweet that the fall of SVB “puts them in danger to find liquidity and survive the next week”. “This is not a local problem for billionaire VCs. The impact can be global”, stands out. RevenueCat does not only operate in the United States. In fact, 20% of its staff (64 employees) work in Spain.
Carranza reiterates that the impact of the fall of SVB is global, and that they are not only “cries of billionaires 10,000 km away.” He further asserts that many Spanish startups have no choice but to resort to this type of bank to be able to receive financing for this type of project. Mainly, because in Spain there are hardly any options.
“More startups from the Spanish ecosystem with foreign investment are also affected, but there is little visibility and a lot of noise. Foreign investments have been essential to create unicorns in Spain, role models, and raise the bar ”, he details.
The fall of SVB does not only affect the technological elite
The situation is similar among small businesses in the United States that worked with SIcon Valley Bank. Lindsey Michaelides, CEO of Strongsuits, a startup dedicated to selling software, has shared via Twitter its uncertainty given the lack of concern about the bankruptcy of SVB.
“The collapse of SVB might seem like a 1% problem that only affects the coastal tech elite. Is not true. This affects small businesses made up of hard-working people making modest mortgage payments in the Midwest. This affects parents who put dinner on the table.”
Ensures Lindsey Michaelides, CEO of Strongsuits, in a thread published on his Twitter profile
Michaelides tells in a Twitter thread how she got her first investment for her company after giving birth to twins. Also, how now, with the fall of SVB, your business, team and family are at risk of collapse. “I don’t know how this ends. I know Strongsuit’s financial future; my team and my family are at risk with the collapse of SVB. I know that my story and the stories of thousands like me who have been impacted by the collapse of SVB do not match the current narrative, ”she underlines.
