Tech startups around the UK have let out a collective sigh of relief following HSBC’s purchase of Silicon Valley Bank UK and are now resuming business operations in the shadow of a near-missed disaster.
The last-ditch deal, confirmed on Monday morning after a whirlwind weekend of government crisis talks, fully protected deposits of startups across the country.
UK tech businesses had feared they would not be able to pay invoices and make payroll. There were also deeper concerns that a complete collapse would send shockwaves through the entire tech ecosystem, creating a domino effect of disruption for vendors and suppliers.
Robert Newry, CEO and co-founder of Arctic Shores, which had 80% of its funds held at SVB UK, said it was a “huge sigh of relief” hearing that HSBC had stepped in....