The now-defunct bank made a concerted push to expand its client base in Australia in the past two years, attracting a raft of companies to use its services.
Canva, one of the country’s highest-profile technology groups, has emerged among a raft of Australian firms struggling to recoup money deposited with Silicon Valley Bank, as local venture capital funds reassure investors they can plug funding holes in their portfolio companies.
A Canva spokesman confirmed that the company had an account with SVB, but declined to discuss the size of the balance. He said the company did not have either debt or equity funding from SVB. “We’re in the fortunate position of having the majority of our cash outside their banking system and have safety nets in place to ensure our operations aren’t compromised,” he said.and former Google chief executive Eric Schmidt’s Innovation Endeavours.
Industry insiders on Sunday suggested that SVB’s administrators – the Federal Deposit Insurance Corporation – would likely announce an acquirer for the bank within days. Without a deal, insured funds would be available for withdrawal on Monday. Funds that are not insured will be paid out based on assets that are liquidated via a specific order of priority.
“In a number of cases they were able to withdraw all of their funds or reduce their exposure late last week, but a few of our portfolio companies have remaining deposits with SVB,” he said. “Looking beyond Monday, it is uncertain if these companies will have their deposits made whole and if so, when,” Mr Fitzgerald wrote.
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