Silicon Valley Bank Crash
Silicon Valley Bank Crash Silicon Valley Bank (SVB) was founded in 1983 and since then, it has played a significant role in supporting the growth of the tech industry. Initially, SVB focused on providing banking services to startups and small businesses in the Bay Area. However, as the tech industry grew rapidly, so did SVB's influence. The Silicon Valley Bank crash was caused by a combination of factors, both internal and external. One of the main factors was the impact of COVID-19 on the economy, which led to a sharp decline in funding for startups and tech companies. With fewer companies receiving funding, SVB's revenue streams were significantly impacted. Another factor that contributed to the crash was a series of bad loans made by SVB to risky borrowers. These loans were made without proper due diligence or risk assessment, leading to significant losses for the bank when these borrowers defaulted on their loans. The impact of the Silicon Valley Bank crash went beyond...