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VCs urge ‘level heads’ to startups banking with SVB UK

SVB UK VC reaction

Venture capitalists are telling UK startups in their portfolios to be cautious but “maintain a level head” following the collapse of Silicon Valley Bank (SVB).

British startups on Friday were weighing up how much of their funds to withdraw from SVB’s UK subsidiary after a liquidity crisis prompted regulators in California to take control of one of the largest startup lenders in the US.

In a statement, SVB UK said it is a “standalone independent UK regulated bank” and that funds are “ringfenced” from its US parent company and other subsidiaries.

Silicon Valley Bank UK has said it is still processing payments and funding loans for UK clients. But startup founders have been scrambling throughout the day to ensure their funds are sufficiently diversified....