Many of Silicon Valley Bank’s customers turned to the bank exactly because they felt that traditional lenders were not set up to cater to the technology industry’s specific demands.
. This year there’s been little reprieve, as layoffs continue within local startups as well as at Europe’s big tech outposts. At the end of February, Google confirmed it would cut 200 jobs from its business in Ireland.
Against this backdrop it’s unclear whether any major European bank is able or willing to fill the niche that Silicon Valley Bank is leaving. And even if a bank wanted to take the risk, they'd likely struggle to replicate Silicon Valley Bank's deep knowledge of the startup ecosystem, Veugelers adds. “You need way more than deep pockets. You also need to be sufficiently close to the whole venture capital market and have the ability to do due diligence” she says. “If the bank had that capacity, it would have already been doing this.” HSBC did not immediately reply to WIRED’s request for comment.
KeepIt secured a $22.5 million debt financing package—a way of raising money through borrowing—last year from Silicon Valley Bank’s UK business. Although the bank opened an office in Copenhagen in, the branch did not have a banking license. Mainstream banks “are ultimately impossible to bank with if you are making a deficit in a subscription business,” Schouboe says. “The regulatory environment is too strict for them to actually help us.
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