Silicon Valley Bank, one of the leading lenders to the tech sector, failed after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008. The bank’s failure caused a wider sell-off in stocks and sparked fears that other banks may be at risk of failure.
The bank was also criticized for its handling of the Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Across the Atlantic, startup companies woke up Saturday to find that Silicon Valley Bank’s U.K. business will stop making payments or accepting deposits.
Hims did provide a press release that says, “The Company has limited cash exposure resulting from the liquidity concerns at SVB. The vast majority of the Company’s cash and short-term investments are held via third-party custodians other than SVB. Additionally, the Company does not have any debts or current lines of credit directly impacted by these events.”
Update 3/11/23:
