The second-largest bank collapse in U.S. history, sandwiched between two other notable bank failures within a tumultuous week, had an outsized impact on the tech industry owing to long-existing ties.
The shockwaves reverberated across the global tech landscape, including far-away ecosystems, such as the budding tech scene in Africa, which has deepened its ties to Silicon Valley and attracted billions of dollars in funding over the past decade.
Between the implosion of Silicon Valley Bank (SVB); the foremost bank for startups and tech funders, and the winding up of Silvergate Bank; the U.S. bank known for its strong links to the crypto industry, African startups and tech investors have been put on their toes even as the Fed moved to save the day late last Sunday in the case of the former.
There are indications that some players in African tech—such as Ajim Capital; a USD 10 M fund that makes early-stage bets—are open to keeping "some" capital with the new Silicon Valley Bridge Bank (as reformed by the FDIC), after initially fearing for their deposits as SVB’s troubles spiralled.
