It will be very difficult for venture capital firms and startups to find another bank that is as startup-friendly as the fallen Silicon Valley Bank, said U.S.-based venture capital firm Race Capital.
“SVB was not just another bank around the corner. They really were the bedrock of Silicon Valley,” said Edith Yeung, general partner at Race Capital, on CNBC “Squawk Box Asia” on Wednesday.
SVB was Race Capital’s primary bank and two of their portfolio companies had 100% funds sitting in SVB, Yeung said.
“If you are a startup founder, you may be able to find another bank to custody your funds,” she said.
“But going forward, it is definitely very, very difficult to find a bank that is so startup friendly, and be able to provide venture debt to many, many startups. This applies to startups in Silicon Valley and China,” she added.
This article was originally published by CNBC.
