SVB’s Collapse Hits the Chinese Startups It Once Wooed

Silicon Valley Bank collapsed in less than two days. In that time, the bank’s stock price fell over 60%, and customers tried to withdraw $42 billion. Here’s how SVB’s collapse became the second-largest U.S. bank failure ever, and what it means for customers in the future. Photo Illustration: Alexandra Larkin

By Jing Yang

and Rebecca Feng

Updated March 16, 2023 10:57 am ET

The sudden collapse of Silicon Valley Bank sparked acute anxiety among startups around the world. It was particularly problematic for firms in China that had put all their eggs in one basket after being courted by the California-based lender earlier on.

Even after the Federal Deposit Insurance Corp. stepped in to backstop all of Silicon Valley Bank’s deposits, some Chinese startups, venture-capital and private-equity firms ran into hurdles trying to move their money out of the failed lender. Many had multiple accounts with SVB, which was the only U.S. bank some Chinese customers used for their dollar deposits and transactions.