The collapse of Silicon Valley Bank (SVB) has sent shock waves through financial markets and might become the biggest financial shock to the global tech and start-up industry in decades. A black swan event. Even though SVB is mostly active in the US - 25% market share and client relations with 50% of start-ups at some point - European start-ups are also affected, for three reasons.
First, many European start-ups can’t access the excess liquidity they parked at SVB in London. For some companies, this could be millions of Euros. We believe they will get it back eventually, but it might take a while. Second, SVB, with an established presence in Sweden, Denmark, and Germany, used to provide debt financing to start-ups in these markets. That source of funding will now dry up as follow-on financing will not be available. And third, we expect the broader start-up ecosystem to take a liquidity hit, not least because many VCs used to park their money at SVB - making funding rounds even harder and driving equity valuations down even further.
In this dire situation, Float moved fast to help European SVB clients with a SaaS or subscription business model that has money stuck at SVB. We created an emergency financing product for:
- Providing up to three months of the runway as instant liquidity
- Refinance existing SVB loans
We will treat such cases with priority and try to complete the credit analysis within 48 hours.
We're all in this together, and we want to do our part to help. Float is dedicated to providing the support and guidance you need to keep your business running smoothly during these challenging times. If you have any questions or simply need to chat, please don't hesitate to reach out to us at firstname.lastname@example.org.