Silicon Valley Bank UK Shuts Down: BoE Halts Operations, VCs Express Support

• The Bank of England (BoE) has halted the operations of Silicon Valley Bank’s United Kingdom branch (SVB U.K.)
• Several U.K. venture capitalists (VCs) issued a joint statement in support of SVB U.K., stating that it is a “trusted” and “valued partner”
• A Castle Hill report revealed that prominent blockchain VCs have over $6 billion in assets at the now-defunct bank

Bank of England Halts Operations of Silicon Valley Bank’s UK Branch

The Bank of England has announced that it will halt the operations of Silicon Valley Bank’s United Kingdom branch, citing its “limited presence” in the UK and lack of “critical functions” within the financial system. This follows the closure of SVB by the California Department of Financial Protection and Innovation.

Financial Services Compensation Scheme to Protect Eligible Depositors

The BoE stated that a bank insolvency procedure would mean eligible depositors are paid out by the Financial Services Compensation Scheme up to £85,000 or £170,000 for joint accounts as quickly as possible. It added that any remaining assets and liabilities during its insolvency proceedings would be managed by bank liquidators with any recoveries distributed to creditors.

UK Venture Capitalists Endorse SVB U.K.

Several U.K venture capitalists including Index Ventures and Atomico issued a joint statement expressing their support for SVB U.K., stating that it is a “trusted” partner playing a “pivotal” role in supporting startups in the UK ecosystem.

Castle Hill Report Reveals Prominent Blockchain VCs Have Over $6 Billion Assets at Now-Defunct Bank

A Castle Hill report revealed that prominent blockchain VCs have over $6 billion in assets at the now-defunct bank, including $2.85 billion from Andreessen Horowitz, $1.72 billion from Paradigm and $560 million from Pantera Capital.

Coalition for Digital Economy Expresses Concern For Startups With Exposure To SVB U.K.

The Coalition for a Digital Economy, a non-profit organization campaigning for policies to support digital startups expressed concern on March 11th, claiming there are a large number of startups and investors with significant exposure to SVB U K who will be concerned about this closure