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SVB Collapse - Implications for Tech.


As a Tech Sales Recruitment business, Harvey George Associates has been following the recent events surrounding Silicon Valley Bank (SVB) and its sudden collapse. For years, SVB has been the go-to bank for small tech start-ups, providing them with access to banking services and venture debt loans that other banks have been reluctant to offer. However, last week, SVB suffered a run on its bank, resulting in customers attempting to withdraw billions, which led to the government stepping in and closing it down.


While the government has ensured that depositors will get their funds back, the loss of SVB has raised concerns across the tech industry. It has amplified broader concerns about the tech industry, which has finally faced a major slowdown and increasing skepticism. Companies such as Amazon and Facebook have cut tens of thousands of workers as they seek to trim their businesses and return to prior levels of profitability. Tech giants are moving away from developing "moonshot" projects, and it has become more difficult for start-ups to raise money to start and maintain their businesses.


The sudden collapse of SVB is a significant blow to the tech industry, and its elimination will set the industry back even further. While other regional banks in the Bay Area cater to start-ups and tech founders, none have the level of expertise that SVB had in serving the sector. Harvey George Associates understands that the loss of SVB will create a significant void in the market, leaving many start-ups unsure of who will help them move forward.


As a tech sales recruitment business, we believe that the collapse of SVB highlights the need for a new alternative. It's still unclear what that could be, but the industry must come together to find a solution that will support the growth and innovation of small tech start-ups. We will continue to follow this story and provide updates on any new developments.

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