Commercial bank headquartered in Santa Clara, California, Silicon Valley Bank (SVB) was renowned for its support for the tech industry in the United States and globally. It was the largest bank by deposits in Silicon Valley and was a subsidiary of the bank holding company, SVB Financial Group.

On March 10, 2023, the bank suffered a significant failure and became the 16th largest bank in the US to fail. In an attempt to generate liquidity, SVB sold a $21bn bond portfolio, which resulted in a loss of $1.8 billion. Despite trying to fill the solvency hole with a combined equity offering of $2.25bn, the attempt failed. The bank was closed by the FDIC on Friday, March 9, at noon. The Bank of England confirmed on the same day that Silicon Valley Bank UK was set to enter insolvency following actions taken by its parent company in the United States.

The announcement by the Bank of England caused concern among customers of Silicon Valley Bank UK, especially how it would impact their cashflow positions in the short term. However, the UK government and the Bank of England recognise the importance of the tech sector to the country's economy and the potential impact of the failure of Silicon Valley Bank UK on the liquidity of the tech ecosystem.

As a futurist, technology enabler, venture advisor and start-up, I am deeply concerned about the impact of the failure of Silicon Valley Bank UK on the tech industry in the UK. I believe that we can use this situation as an opportunity to support the sector's growth and development moving forward.

To support the UK tech sector, we need to create an environment that fosters innovation and entrepreneurship. This involves creating policies and frameworks that encourage the development of start-ups, scale-ups, and unicorns. We also need to ensure that these businesses have access to funding and support to help them grow and scale.

I recommend that the government and relevant authorities collaborate with the private sector to develop programmes and initiatives that provide support to start-ups, scale-ups, and unicorns in the UK. This includes offering financing options, mentorship, and other forms of support that will help these businesses succeed.

In conclusion, while the failure of Silicon Valley Bank UK is undoubtedly a setback for the UK tech sector, it is an opportunity to create a more resilient and innovative ecosystem. By working together, we can support the growth and development of the sector, and create a future that is driven by technology and innovation.