About 40% of the UK's biotech companies, developing drugs for everything from cancer to heart disease, were banking with Silicon Valley Bank's British arm.
About 40% of the UK’s biotech companies, developing drugs for everything from cancer to heart disease, were banking with SVB’s British arm, according to the UK BioIndustry Association .
SVB UK has loans of around 5.5 billion pounds , deposits of about 6.7 billion pounds, and about 3,000 UK clients, according to HSBC. Dima Kuzmin, managing partner of London-based investment firm 4BIO Capital, which does not bank with SVB directly but has portfolio companies exposed to the bank, said many entrepreneurs and CEOs of small startups had also opened personal accounts with SVB.
Worst case, he said, investors will become more concerned about liquidity in the sector and start drip-feeding the biotechs with smaller funding rounds.The turmoil follows a difficult year for biotech funding globally. Rising interest rates, recession fears, and geopolitical shockwaves saw investors pull back from anything considered risky last year.
The SVB collapse also comes after the UK’s biggest listed drugmakers GSK and AstraZeneca warned last month that the UK government’s ambition to become a life sciences “superpower” has been hampered by a discouraging tax environment among other problems.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
HSBC rescues British arm of stricken Silicon Valley BankHSBC buys Silicon Valley Bank UK Limited, paying a symbolic 1 pound ($1.21).
Read more »
Liza Soberano, idinepensa si Ogie Diaz; 40% komisyon, 'di totooTinalakay ang usapin sa pera o komisyon ng mga dating manager ni Liza Soberano sa episode ng 'Fast Talk with Boy Abunda' nitong Lunes.
Read more »
Worry for tech startups after Silicon Valley Bank failureNew York, United States — Silicon Valley Bank’s stunning collapse has led to the freezing of tens of billions of dollars stored there by startups and their private equity backers, raising
Read more »
UK races to minimize damage from Silicon Valley Bank collapseMore than 250 UK tech firm executives sign a letter calling for government intervention and warning of an 'existential threat' to the UK tech sector.
Read more »
Silicon Valley Bank staff offered 45 days of work at 1.5 times payThe collapsed Silicon Valley Bank had a workforce of 8,528 at the end of 2022.
Read more »
Silicon Valley Bank's demise began with downgrade threat – sourcesDetails of Silicon Valley Bank's failed response to the prospect of a Moody's Investors Service downgrade show how quickly confidence in financial institutions can erode.
Read more »