The collapse of SVB Financial Group SIVB could have a ripple effect on the technology and biotech industries, the two largest sectors that had deposits and financial relationships with the company’s Silicon Valley Bank.
Here’s a look at one of the biggest companies impacted and others who have publicly shared their relationships or could have ties to the struggling bank.
What Happened: Silicon Valley Bank was closed Friday by the California Department of Financial Protection and Innovation. The Federal Deposit Insurance Corporation (FDIC) was named as receiver for the bank.
The company has struggled to raise additional capital, and concerns of cash burn and liquidity sent shares of the bank down significantly on Thursday and Friday before the stock was halted.
With the FDIC insuring deposits up to $250,000 and Silicon Valley Bank being one of the leading banks for public and private companies in the technology and biotech sectors, many could be impacted by their uninsured deposits becoming unavailable.
One of the largest companies to speak on this issue is streaming company Roku Inc ROKU.
“Roku is aware that Silicon Valley Bank was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver,” the company said in an SEC filing.
Roku said all insured depositors of SVB will get full access to their insured deposits no later than Monday morning.
“Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors.”
Roku reported in the filing that they have $487 million of their $1.9 billion in cash and cash equivalents held at SVB. This represents 26% of the company’s cash and cash equivalent balances as of March 10, 2023.
The remaining $1.4 billion in cash and cash equivalents is split among other “large financial institutions.”
“The company’s deposits with SVB are largely uninsured. At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB.”
Roku said it believes it has enough cash and cash equivalents outside of the SVB deposits to meet its working capital needs for the next 12 months and beyond.
With a market capitalization of $8.4 billion and 26% of its cash deposits held at SVB, Roku could be one of the largest companies impacted by the financial crisis.
Related Link: Short Seller Who Predicted FTX, Silvergate Capital Collapses And Shorted SVB Financial Has New Banking Target
Other Companies Impacted: Benzinga reported on other companies that have ties to Silicon Valley Bank on Friday.
Shares of Sunrun Inc RUN fell on Friday on news the company had Silicon Valley Bank as one of its lenders.
Biotech company Chimerix Inc CMRX said its cash held at Silicon Valley Bank was near the FDIC insured limit.
Benzinga Pro, a source for top stock market news and headlines, shared a list of all the companies that had put out filings and statements regarding their relationships with Silicon Valley Bank.
Many more could issue statements in the coming days.
Here are companies with exposure to Silicon Valley Bank:
Generation Bio GBIO: mid-single digit millions of dollars
Clearwater Analytics CWAN: $13 million share offering had SVB Securities as an underwriter
IGM Biosciences IGMS: Under $5 million in deposits at SVB
Novanta NOVT: 10% of $695 million credit agreement held by SVB
X4 Pharmaceuticals XFOR: 2.5% of cash held with SVB
aTYR Pharma LIFE: Under 2% of cash held with SVB
Oncorus ONCR: has $10 million, or around 23% of its cash, held with SVB
COHU COHU: $12.3 million, or 3.8% of cash held with SVB
Compugen CGEN: 1.3% of cash held with SVB
Sangamo Therapeutics SGMO: $34.4 million in deposits held with SVB of $307.5 million in total company cash
Rocket Lab RKLB: Has $38 million, or around 7.9% of cash, held with SVB
Eiger Biopharmaceuticals EIGR: Has $8.3 million, or around 6.9% of cash, held with SVB
Ginkgo Bioworks DNA: Has $74 million, or 6% of their cash, held with SVB
Iteos Therapecutics ITOS: Has around 1% of total cash held with SVB
iRhythym Technologies IRTC: Has $54.5 million in operating accounts at SVB, company had cash equivalents of $213.1 million as of Dec. 31, 2022.
Shattuck Labs STTK: Has $2.3 million in cash held with SVB
QuantumScape QS: Company said it has “low single digit exposure” to SVB
Juniper Networks JNPR: Company has less than 1% of cash held with SVB
Landos Pharmaceuticals LABP: Company has “low single digit millions” in cash held with SVB
Payoneer Global PAYO: Company has less than $20 million of cash held with SVB
Praxis Precision Medicines PRAX: Company has less than 20% of cash held with SVB
Ambarella AMBA: Company has around $17 million held with SVB
Neuronetics STIM: Company has less than $1 billion in cash with SVB
Mirum Pharmaceuticals MIRM: Company has less than 1% of cash held with SVB
Kymera Therapeutics KYMR: Company has around $2.2 million in cash held with SVB
Read Next: SVB Financial CEO Sold $3.6M In Shares Prior To Banks Collpase, Here Are Other Insider Sellers
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