Silicon Valley Bank Crisis: Push To Save UK Startups

The government was trying to secure an emergency support package last night to protect Britain's tech and life sciences sectors from major losses after the collapse of Silicon Valley Bank (SVB), as financial markets braced for further volatility following the biggest bank failure since 2008.

- Kalyeena Makortoff and Aubrey Allegretti

The prime minister, Rishi Sunak, and the chancellor, Jeremy Hunt, signalled they were exploring a range of options, including an emergency fund that could support startups, as bidders put their hat in the ring for a potential white knight takeover of the UK subsidiary.

Hunt warned that fledgling businesses across the tech and life sciences sector were at "serious risk" if deposits were wiped out by the collapse of SVB UK.

The US treasury secretary, Janet said the Bank of London chief executive, Anthony Watson.

An investment firm from the United Arab Emirates, Royal, reportedly expressed interest in SVB UK, which has 3,500 customers, ranging from startups to established tech businesses such as the payments firm Wise.

The Guardian understands the small business lender OakNorth, which was founded by the Conservative party donor Rishi Khosla and is advised by the former chancellor Philip Hammond, also threw its hat into the ring, as first reported by Sky News.

Hunt said the issue was a "high priority" for the government, which could also turn to the state-owned British Business Bank to explore government-guaranteed loans for the sector, similar to those offered to businesses during the Covid crisis.

SVB UK said "barring any intervening event", regulators at the Bank of England would put the lender into insolvency from yesterday evening.

Hunt has been locked in late-night meetings with Sunak and the Bank of England governor, Andrew Bailey, in an attempt to avoid further fallout from the collapse of SVB UK's American parent company on Friday. It marked the largest failure of a bank since the financial crisis 15 years ago.