Israeli SVB Branch Closes After Collapse, Dozens Laid Off

By JPost
Posted on 03/12/23 | News Source: JPost

The Israeli branch of the Silicon Valley Bank has closed, N12 reported Sunday, with its approximately 40 employees stopping work. 

A handful of employees will stay on for up to 45 days, possibly to help ensure the smooth transfer for the bank should it be sold, according to N12.

Israeli start-ups face decreased valuation, increased competition for funding and logistical challenges in the coming weeks following the collapse of Silicon Valley Bank (SVB) on Saturday, when the bank announced several billions of dollars in losses and saw a hefty 60% plunge in its share price, followed by a further 20% in aftermarket trading. On Sunday, it was reported that SVB’s Israeli branch closed, ceasing work for around 40 employees.

The crash is expected to decrease the valuation of the hundreds of Israeli clients, start-ups and Venture Capital firms believed to be served by SVB, which is a central player in the global VC and start-up ecosystem.

Early stage companies in need of capital may find themselves in further trouble, as mitigating the damage done to pre-established companies which have been damaged by the debacle rises to the top of investors’ priority lists, resulting in a lower amount of money available for new investments.