Silicon Valley Bank Collapse and Utah

Drockton Report Articles
Silicon Valley and Utah
Depositors Line up Outside Silicon Valley Bank

$18.5 billion There are an estimated 7,600 tech business establishments in the state. The tech industry accounts for $18.5 billion, or 11.2%, of the total Utah economy.

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Silicon Valley Bank and Utah

Utah Companies Affected by Silicon Valley Bank So Far

This is what we know so far.

Kickstart

Not to be confused with Kickstarter, KIckstart is a Venture Capital Fund that secures money for businesses in their early stages. The company has raised a reported  2.7 billion dollars for startups and has a current portfolio worth a reported $311 million under management. How much was sitting in Silicon Valley Bank Accounts is unclear. Startups are cash heavy and normally working towards becoming profitable. They rely on Venture Capital to grow, meet payroll and other expenses. If Kickstart has liquidity issues then so do the companies that rely on the Venture Capital Fund to pay expenses. Currently they have 150+ Portfolio companies. 

REV Road

Rev Road is another Venture Capital Group in Utah with over 60 companies in their portfolio. Like Kickstart, they invest in new businesses. While no information is available on whether they have money in Silicon Valley Bank, they claim that some of their Portfolio companies do and are trying to figure out a solution.

Rachelle Morris, managing director at Utah venture firm RevRoad Capital, said she and her partners have also been hearing from their portfolio companies, many of whom have accounts and assets held by Silicon Valley Bank. “We have been in touch with those inside of our portfolio who are impacted by this and are offering whatever help we can,” Morris said. “This is an existential stress test being placed upon half of all venture capital-backed startups in the country. And they’re experiencing it simultaneously.”

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Half of all Venture Capital Startups were Effected?

There are 510 startup companies in Utah that were founded in 2014 or later. If half of them are in trouble, that’s 255 companies. There are a total of 960 Tech Companies in Utah. This current event is the beginning of the liquidity crisis for all these companies. Far more than 11.2% are of Utah’s Economy will be affected as other banks follow suit.

Why the Entire US Banking System is in Trouble

I will explain this in my next article….