The unbiased perspective

  Why did the Silicon Valley Bank collapse? The Silicon Valley Bank (SVB)  which is best known for its financial services and solutions to the technology and innovation sector. It was founded in 1988 in Santa Clara, California. It provides a wide range of financial services, which includes commercial bank, investment bank and private banking. It offers venture capital financing, asset management, foreign exchange and treasury management. Throughout the years it had established itself as a leading bank for investment in the technology and innovation sector which is known for its high risk. Despite its success , SVB has faced its share of challenges over the years, which includes the impact of economic slowdown and changing market conditions. Also the stocks in the technology sector is facing downturn over the past few years and the hiking of interest rates by the US federal reserve to combat inflation. The reason of the collapse is that as the venture capital firms were drying ...