Silicon Valley Bank UK tech companies rescued by HSBC 13 Mar 2023
Tech and life science start-ups in the UK affected by the failure of the US-based Silicon Valley Bank have been saved by HSBC’s purchase of its subsidiary, Silicon Valley Bank UK.
Following the collapse of the US bank on 10 March 2023, Silicon Valley Bank UK stopped making payments or accepting deposits before it was put into insolvency on 12 March.
The UK government stepped in over the weekend and began working on a plan to help technology companies meet their cashflow needs, following a letter of 11 March to Chancellor Jeremy Hunt, signed by over 200 heads of UK tech firms, calling for intervention.
A source quoted by the BBC estimated 30-40% of UK start-ups could be affected.
The government is keen to ensure the future of these fast-growing businesses that it sees as core to the UK’s economic success and Hunt, the prime minister, the Bank of England governor, HSBC bosses and civil servants worked through the night to secure the deal before trading began on Monday morning.
HSBC paid £1 for SVB’s UK arm after a competitive process.