Industry Analyst & Strategist
The big tech story from yesterday is the tech darling collapse of Silicon Valley Bank (SVB). Just as quickly as it happened WooCommerce notified WooCommerce Payments users of how they (well actually Stripe) is handling the collapse:
As a result of the FDIC takeover of Silicon Valley Bank (SVB), our payments partner, Stripe, has suspended deposits to SVB bank accounts as of March 10, 2023.
Stripe itself has a very detailed FAQ on what actions stripe has taken as well as what Stripe customers can expect. Since many WordPress sites use Stripe (whether with WooCommerce Payments or not) and may have account at SVB, I highly recommend you review.
There are probably many examples of funds with ties to SVB, but one quick review shows that Clearlake Capital (of Newfold Digital, Constant Contact ,etc.) had at least one deal with SVB in 2021, Silicon Valley Business Journal, Silicon Valley Bank bulks up its new technology investment banking operation, “The company’s tech investment banking team of more than 50 people has worked on several deals including Clearlake Capital Group LP’s pending acquisition of Quest Software Inc. …”
In a bigger picture sense, we don’t know if this is the tip of an iceberg or a broader 2023 issue. I do feel there will be a rescue of some sorts, and Bob Elliott has a great thread on what should happen, and starts off with, “The US banking system is built on the expectation that equity and bond holders accept the bank economic risk and depositors, particularly the small folks, do not. While that is not legally the structure, its important to keep in mind that’s functionally how it works. Thread.”