Since SVB Financial’s (NASDAQ:SIVB) principal subsidiary, Silicon Valley Bank, collapsed last week, Wall Street has been in turmoil. With SVB seized by government regulators and New York’s Signature Bank (NYSE:SBNY) shut down, banking stocks have been in free fall and don’t show any signs of reversing direction. Many of the stocks that saw trading halts imposed last week as SIVB fell are still deep in the red today, while confidence in the sector continues to fall.
The Federal Deposit Insurance Corporation (FDIC) is working to help individual SVB depositors recover the money they couldn’t get out during last week’s bank run. But what does that mean for the companies that had money in SVB? As it turns out, there were quite a few companies with significant deposits in the bank that no longer stands.
It’s well-known that Silicon Valley Bank had strong ties to the local startup community. But its client list also included plenty of larger, publicly traded companies.
Now, investors are looking for answers in the carnage of the biggest financial meltdown since 2008. Many questions center around who had money in SVB and what the government plans to do about it. As the Washington Post explains:
“The Federal Deposit Insurance Corporation will guarantee all deposits at SVB and Signature — even those above the usual $250,000 limit. SVB held roughly $150 billion in uninsured deposits, and Signature Bank held more than $70 billion in uninsured deposits. Those customers will be able to access all their funds now, even though the banks collapsed. This sends the message that customers have no reason to move their money, because they won’t lose it if their bank goes down.”
But who are the companies that held large deposit accounts with SVB? Let’s take a closer look.
Who Had Money in SVB?
The list of companies with funds tied to Silicon Valley Bank is longer and more varied than some might expect. There are many privately held startups among its clients, but here’s a breakdown of the public companies that had money in SVB prior to its collapse. Per the Wall Street Journal, they are listed in order of their estimated percentage of cash held by Silicon Valley Bank:
- Roku (NASDAQ:ROKU): $487,000,000 deposited, 26% of its cash or equivalents.
- iRhythm Technologies (NASDAQ:IRTC): $54,500,000 deposited, 26% of its cash or equivalents.
- Oncorus (NASDAQ:ONCR): $10,000,000 deposited, 23% of its cash or equivalents.
- Bill Holdings (NYSE:BILL): $300,000,000 deposited, 12% of its cash or equivalents.
- Sangamo Therapeutics (NASDAQ:SGMO): $34,400,000 deposited, 11% of its cash or equivalents.
- Ambarella (NASDAQ:AMBA): $17,000,000 deposited, 8.2% of its cash or equivalents.
- Rocket Lab USA (NASDAQ:RKLB): $38,000,000 deposited, 7.9% of its cash or equivalents.
- Eiger Biopharmaceuticals (NASDAQ:EIGR): $8,300,000 deposited, 6.9% of its cash or equivalents.
- Aehr Test Systems (NASDAQ:AEHR): Less than $2,500,000 deposited, less than 6% of its cash or equivalents.
- Roblox (NYSE:RBLX): $150,000,000 deposited, 5% of its cash or equivalents.
A few other notable companies that had money in SVB are Digi International (NASDAQ:DGII), which also had 5% of its cash or equivalents in the bank and Enanta Pharmaceuticals (NASDAQ:ENTA) and Stem (NYSE:STEM), which both had less than 5% of their cash deposited.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
