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SVB shockwave will have long-term impacts for tech sector

SVB's collapse will heap more pressure on the growth-at-all-costs attitude of Silicon Valley.
March 13, 2023
  • Technology funds continue to sell off
  • Advertising and software spending will fall as start-ups rein in costs

Technology sector valuations have been badly hit by the collapse of Silicon Valley Bank. Although depositors in both the UK and US will now be paid back in full, share prices for growth-focused technology companies and those with exposure to the technology sector continued to fall on Monday morning.

The risk of Silicon Valley Bank’s customers not being able to make payroll has gone. In the US, regulators said over the weekend that all SVB’s depositors with would be fully repaid. Meanwhile, on Monday HSBC agreed to acquire the UK arm of the bank for a nominal £1.

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