Engineering Alpha

Engineering Alpha

What is the Deal With SVB’s Failure?

A Short Summary of What Went Wrong in Silicon Valley

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Mar 14, 2023
∙ Paid

What‘s Happening?

Silicon Valley Bank, whose clientele include numerous startups and venture capital firms, is owned by SVB Finance. These clients generated a large amount of cash during the pandemic, which stimulated an increase in deposits (naturally).

SVB had around $60 billion in deposits at the end of the first quarter of 2020. By the end of the firs…

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