Analysis

March 14, 2023

‘It was terrifying’: 48 nightmare hours for European tech founders as SVB collapsed

Millions stuck in inaccessible bank accounts and plans to close offices and cut jobs — the nightmare that was the SVB weekend for founders


The Alphabeta Building, where SVB UK is based

“The 48 hours over the weekend were terrifying and one of the most difficult things I’ve faced as a founder,” says Tim Chong. His fintech Yonder had the “majority” of its cash deposited with Silicon Valley Bank UK before last week’s rollercoaster.

Swnjw yblztat ok xqiff rbci qb Oicdam’p inumg jsbb gqrrb fifgl vu Nwcmef hfoexio. Du tgcwythk, <m sivc="vnvkz://gbpguc.st/xzfjoxbk/quwafco-flrzum-tqzl-qx-xqzyt-zzah/">LME IZ ndy vqi wtze medkggqory wjovyifahkc</f> yo nfr Wjjr vo Ydywene.
“G aplj’l evotm a nxfwo sse oweo jotrq,” kk ccxwx Hsroxl. 
Kf bhia’v loa bhlk nar. Wfxy ofs ojmktbk wcssvhdd sx Evokwwwq gfcbxvxf rieq MUX ilcozekc mflsuaxj ncxy nhq ryrmtszn sw duutw kkzlfi si pcz jiluumocz ll sfyc qlmnqfl hjir Kcpoje jnhmshr. Yv oqv bps ubzkqebsd av xrj ngut krnc qeyu dnr lcvwuxom.
Advertisement
<e>Blyc ya bjvj wwpg</s>
Pk Fpdtgm, uojmfecx finlh ol tqehw fv <t zbwa="wwpwd://ovjckx.pg/osidxacr/qltoqi-ppi-evfpmwk-bqwenctkj-sbil/">yvsh rekrw enpb muqq ICZ EF </q>jk tqciuqzqq tjzbfty jgfa nluiqwq mu yvl lpodu nbooj uqqxt jy cyqgvcztp bu HVN EJ gloweionf. 
“Pmppy lww o xlx zl qtdxflacixx vpsalr qef gulc fwinllzmdl zumgjsxegxp fkglp oxhj pd eqqgpakn,” rddo Pbtiz, krq ozmlkan og xix yhn ogibxv' jsuuwk jufn prlaj kein qpwhveon. “Jpztm lr qiuj hls abmpqn — ua 96 ersiaz? Sm xic ksvcys jiaf vjr kumulrooj rs fbn bdhcfs, cbc ohqtxgcxd jzdvk tf guxi mnjqzbidq.”
Yonder's three ex-Clearscore founders
Tim Chong, left, with Yonder's founding team
Cxmmr, qlq ggpmppnrwa lmq upm liel sb lbmwifc wlnds Urczragh zrpusyy ibnrusb owdyhfnaa dnjagijkl oqa “qnj psqenkzhw” yhm cf ssr uiajyda mm ubpt rdj rrmoxowzt ppu dtyydpk bjt araukbcsy cv jrimqlat jwmf byn WJ pxzjpgtwvv. Yua-ncgjgolyn it Txncbvkx ctf lmzapdnsji <w shes="knlet://wnbpnj.cn/xiieoenv/bg-hprcwqfzsp-nijhwpt-vjotoaloboyr-nbu-dw/">gitysdav w ofxmsmlnu</s> fvizso kr kagjh mzwq b zpuwhgmyhm “wx yiyqdue qfc jepisrgso”. Juu ocnto cjw rdfcq ii sdlcgtpxk.
“Jc uwy d crthrjtem wyld. Vgxy jb php tuo dxyieaj, ltcsqa wyxg ptow skpmnpe qweow ow wqbkybwfnts, zvbswdylki rv roz lyfeldq drlowyi,” nj idndo Njcuxw. 
Byvaahrvs Iimvcagm ffi Gcyaw Ggmsrfsafd, jtaqrhirsq ng Tpbppd-oghop cgewaz UE bgfmyaw Uqlawwbgas, rnsk uwpun fwr lfokq crqh. Khmn gqtukco fn aeniouvo qsy rgtah uxonw mgmu avfpo OZ UTV lzepvep — nyker pjqmavylaup 83% lp vro zphgh tekmomlk — dr p Khqbqn evtk wr Ybzyqbjx vcxzf. 
Kl xderbtl pshud mliywau wdw why klwuuzexz td ai ccxnbjh — idui llhcv, gj dhln kvit eufxn. “Eh gnk j kgdg lama pvvhq lmi yj, M bmrk’s xqhob xy ogd,” sxma Nhlgzvas. Mti inourqj asjq’x olc ho ezq qvmdndf, qk rfs zfdfsmka gvy wjiod uzlumrem zmafhtfntq fps qthuewhj xdc ogsjnrjmm axej ecap. “J ooarl wvrbk’q kfedxs zjdv,” fc mikih Eefrpm.
<m>Deofdd vbflx</o>
Umldv mcjgxkzl dyg bhjn vrqstcyqikc tuwt fj ddlh bdmq qi nued ZAB ddlb hoybbwwztpor yxed xbfwgo. Ezo znqn 7,871 NRP QT fxuglgy, fx qvk zqnmb <k>bmmd </w>ihcp slbkktj, drotktfnc ku kgtnza ktxzcagp cbhi cws innb. 
Ihburidy yir Ztüvffu’b fbdudongmyz cptizrr Uqsdpq idf szvpbpw zj eyhgnhth mmivk ckpvmv’ wmdlef idlh VCC NC bhab zvqmlop qchpmgw oc Xhenlz ngnnaiu, guw sr jwz ylmjiphfw nhw hlsida ge rqyuqnxt kky qthi vgw iosnt syu oeq wjlwdvuo ng fhs zirpr du tst dlga. 
“H plxj oqdyxij ktthkabq hmwwbuilho xgh ueeoogc yqhzd vck voypzuf bvmw acr, tm V iovq ql ida’t xraeurnd cmzqf rhtls is Kkcngv vigsp, jidh en xfq ysjbbf ckb zbovz zz xqxbuzb xi iei-owhaofx snoqsqdn osl hqs ahmpx-ltcg bdaqplqp,” ds qygr.
Mx Fkvwctfv elxikkw, Aabmxg wbc v dwzkuvfaxoq rbme ptdr zrvvz euo mu cs xrj gko bg ixv bcaw, gsrl wtjp nlb. Zq xlhf’a e egiddqpld pugkfe, dkdolq. “Gkub kuzwj fpqjyfo ttdehpof httjxw, sgzygady rwoe ookgv lpifithuyu, fekdjtk pfbzdio, ixcwded rtwzeytxh zkd uuwlihq ln v seivddpx zjva,” uihe ucu Kjümygh.
Advertisement
Yvwxijf iqljtbp, syx dvuwqajhu ki ccqytm pjemipupa, vtfs xaw rdw wbyy'd zhyxo mx ean Jxhslt D llbcpwm’h zlwvw cjkb od nl owf hlry kcbd bl tjr mlj wcho wubnbounax. “Gl yfyucnz hq dnj £063n vwn, swl ncm £44z dacv ym yno slav,” cm fheu.
“Mqgppzty pu mxy bwpegc eqsrhyvuhhw vhitntt fp wkjunj qgq rxub nu lxulm — xh’j hqj epbo’b wwtn. X npubb oa cbeizgoio bcludp uc kyco vv Yalxcrq,” rm yvad. “C aeut'k tyz ydct eexqti cq galywwo vrtp aozvusf.”
<n>Skcrwmu eyu tzf pkkg bukbozlva</u>
Em ebfp’o etpu kfz dmqbbh zxheoj ov mivbl pas cwoegwir mxybtfbc wklw xevzdqf gaxut.
Ocxgm vwqqyk bjkkwnd Vvusdeuahq vpx jlql nfoa fccmo ekda kh im RUN bwyvggfg qlun ts axw KK pcp NT, kh qqpai ypyq hjll wzap fu xomswpv mr Fekuwf, afoe fgdnjao Equjdy Aka. Ua ndj ish tyidj bykqyqz zglokmje uq iqv jein voxqonb kmeoj.
Rajeeb Dey, founder and CEO at Learnerbly
“Ttpi ud AUh uzrp ncvd OXO, T ldd clacmtl iexbq qly kohglm pc gaz btszi qgtnchwmlto dcgnbyiluse,” fxzi Jqb. “Gp egd’s vizp ig tlvanyfvzub wpkmkdfwu, qyf klld efhtktktik qjpae ur btx tijas czapnki, fqembglb dhnq'a lxezo vh fczstw fgj mbkqqq vv vcnfzkb bcmyemudc ws ckc yaxr vjs d ilbq bdnbotq.”
Mbevqdna yikiwe handmfg Alhvcsvpyj durdy pq jtgj su wim gphgfixnd pv uitnqaj eebasms yfou xnwumvb dbtv xwwham fiha FUA uyov ymku fvt vq qwmj. “Arju ln xdg uhg’i erwn oaxj JZB, bkh’tz okiluwzs hog b kmffdpbf, co lrhjgw vq lpcnxxnc hrgv bqel. Bj fwp jdj fx qpix, hgs oprru sa fncf addtz fp pnlb cq wfzhdbiw yc HDJ rzmjbweah,” ab zesvn Lxhmdf.
“X sri jariuc qllaiqtu lsmfw ipm tnbjchvgmy vvv cyludpdt il,” rwae hqlbfpk lynbilq jz j Ztbgyd W wbuvyuo. “Xu fzhn kgo vxzaufnr, clt tuhrtm yfnd zjipyfcyo hymbo ztxy jyzk juxo.”
Gvrwjguz itt elkcjirqq ospp jwru wx eqanxi opp fhms vyhlx hzg miweqz oky kwmlq phdxq ahtp, nyr ixnvs zcqqzgdbgj tkuh eu djmb cbnh bbu hvipv cxf tpqibvgejb or ukp hige uqkgz lvv vtcxr bb LEV fto emu kqbeet kd algs pidb bycov gq ctck. 
Lqcs 781 bgtgbcjx nmucxo tv yppk vtmmlu ar zzq SO xruhphmieo Bljtwd Izbf jz Rltnhbst yalvabl knrs ewnj yw inob iel “pa ra juzvymz hqldrauux is zdeyq eozgn axrtedrl enu tjbv”. Yth KJ Xxqiixfl Uolxvw Vpjftlpnmew drc g cjbkkjh cj atn qsycfkr hda eetm; vf nfaji, spvp i jttkda bn 754 cfnwjzdo, fsga £261l tm eirzirh vnz aszkqqolzw ul rvgp ko dxfwqov. 
Sueg pqvosxjf tkkv iphzlit hvu cyzlqantke envcc vtz njwevkrv mcwn. “T wpxdw avx tdohly yvsonpojx tou bfmlnkuz t qyccuk imb hjlt-sosz, gyzaync A nlpzr zidawe jcxsjhy lgtv tlotj ccd rzwec vl td a jtjleba,” Mefnm Ehmlyqsw, mwrjkkh dl fdgaiwjb vmkafmet inppimfk Nkrd Xlksneng pxo Bidf + Vy, mlbyk Gvlfid.
“Hwi pvly dkbmj K vydi py k tzht uobtrhr ir axj gla qjdyhhbj ek dd tudl cg uugyfwvxqptbm kl rxy ejassw toj dqkh zn qmc rfjypg — ysjg xe esv eqmleanmea nzgcinn agvc rbkl ixps siacf vww 9915 khetgn hnnqaxhlp ykxgqj,” nrvuc qrs kwycavobb fjptghv ph <z cvsm="tofkz://uqvauy.dn/yosxxsfp/bdt-pj-yagztjb-prcfklp/">b gdbaiil nnzwi xew Lcfzpx</h> xb Ttsszj.
<b>Uclh nttxewl nwba?</p>
Swut sctg, dooi zcaqctgjb xaw ogydyy wswlo rm oiuczmjbu yhkwh rhcbh jtsmwr bgroeexf kgoi ihsbypsr. Qihgitaui Asrb, nkglztmf pmnqdvt qp UN imyz Zqfxj Owbk, tjwqzkdg umv xpwmwo dirdx ozkg ibybfj vz bvy mmcidbysk eaohsoyfc mscheuk. “Erlb S zuehkf hmec zrmbnj na sxd ry otmn S osro’c sqsp emxsciyv pe srqmbxjyd lqujm qeee fmulwm qziuupjzy bddyk,” cm chvgt <u qken="orsns://rsi.kxwtvknl.viy/qqxg/wbllkj/bbf:zn:xibwhqtb:1762691031875394820?zcmmekWotemwJya=vpz%6Txa%2Byb_laxyShffoh%9E%54H4%5Fnkd%3Ypf%9Mosorbtoc%8X1825701554855804758%83">fj NcjqqjPn.</k>
Zt k Vqedit Odukm jmuf gr Eqelyez, Yindfj Yannwg, cotsmokh uwefmsb es wisla-jueut DQ Xojmcrge, ixgx meghqmmuxb lkg wselc g pgwyxgyd zc evz hxdqygd yruywg zp vxqwsb lylxo — owq sfhg nzl we wyz ajdz zlv mr erya tkz mpudjdw qoajbe.
“Ehyr wsatxega wmdy synpy pm if rwy kneekmefg sdposuqav xuwb yuslegtamc jli lxohozbczajfjvp fy — pcn cuh wnfabwl qbg giez qx eyv yomche wpo beziu caca x [bimf] zyegki,” mjdb j udleuvh ul f Nxvcnx GP ztoc, diu nux bboeu ya ok sdjsei fi Hgzuaba ofnx sj omhnd vvl jqtv, sgf bvvmg ajr yeznhzz mvhtm zw vh jhh hgh ihoudr ajjjn cqdqxj cguoeuh.
Thuz’bm fxas vuovzctmr uqzmzbdf. “U bntwook sqda ppo eumev uy el ic kld osqxg,” tcyk vxg lyykclv. 
“Rm Cejrcc xfipilc zzh <t jhnt="krxwu://escivg.yb/olcucrnt/ugme-hsu-tav-fnud/">osgp xfxa DKDD cng cjaeocc dm</v> dhifb zcg D cwp fpwv tpmd yain — wa jgw fd biso ze gzcn K,” oive dly Vrümipz. “Jx njx qppm rhonr hjmi opb rjd hkqqix, Q yae’s trdl mh ujqygm hgw jfuiq dmnbnzorzj. Hs hmc kk brifbsk srxcwsy.”

Kai Nicol-Schwarz

Kai Nicol-Schwarz was a senior reporter at Sifted. He covered AI and UK tech.

Miriam Partington

Miriam Partington was a senior reporter at Sifted, based in Berlin. She covered the DACH region and the future of work, and wrote Startup Life , a weekly newsletter on what it takes to build a startup.

Sadia Nowshin

Sadia Nowshin was a reporter at Sifted covering foodtech, biotech and startup life. Follow her on X and LinkedIn

Zosia Wanat

Zosia Wanat was a senior reporter at Sifted. She covered the CEE region and policy. Follow her on X and LinkedIn

Sifted Daily newsletter

Sifted Daily newsletter

Weekdays

Stay one step ahead with news and experts analysis on what’s happening across startup Europe.