Following news that Silicon Valley Bank (SVB) had been taken over by government officials, several big martech-related companies – including Roku and Roblox – can breathe easier, knowing their deposits will not be lost.
SVB's decision to sell stock in order to increase its cash reserves caused a bank run, as the announcement came days after the collapse of Silvergate, which was caused by the loss of value of its crypto-currency holdings.
The majority of SVB's deposits were not insured, leaving customers understandably concerned about their funds. However, the government has now guaranteed all deposits, meaning payrolls will be met and bills paid.
Among the major martech-related companies with deposits in SVB were streaming service/ad space provider Roku with $487 million, online game/ad space provider Roblox with 5% of its $3 billion of cash and securities balance, and Canadian adtech company AcuityAds with roughly $55 million in deposits.
It is unclear if SVB's management did anything wrong, as they had taken prudent actions but were caught off guard by a sudden shift in the economy. This highlights the importance of a stable, solvent monetary system for the economy and, consequently, the martech industry.
Originally reported by Martech: https://martech.org/roku-roblox-and-other-martech-companies-relieved-by-silicon-valley-bank-bailout/
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