The collapse of Silicon Valley Bank will spark a wave of tech mergers as funding opportunities dry up for risky startup companies, Wedbush says
is more technology mergers, according to a Tuesday note from Wedbush analyst Dan Ives.
"SVB is the hearts and lungs of the tech startup world and had its tentacles in one way or another across the early and late stage tech landscape especially since the dot.com burst," Ives explained."When others left the Valley in 2001/2002, SVB was the bedrock and played an instrumental role in the thousands of successful tech startups seen over the years."
"Now startups face the arduous task of getting loans and banking relationships with large money center banks or other regionals that will greatly scrutinize funding with a lab microscope," Ives said. In the meantime, there are some big losers in the tech ecosystem that will face crunch time due to the downfall of Silicon Valley Bank, and that's the software and tech vendors that have exposure to the small and medium-sized businesses, according to Ives.
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