The collapse of Silicon Valley Bank (SVB) on Friday, March 10, sent shockwaves through the tech and biotech world. But it does not appear to have had a major effect on the BioHealth Capital Region and the Philadelphia region’s life sciences industry, at least not so far.
On about March 8, SVB, a major supporter of tech, biotech and venture capital funds, indicated it was facing a cashflow problem. Initially, it attempted to raise money by selling shares. Then it attempted to sell itself. Investors were alarmed by these efforts and began pulling their funds from the bank, causing a run on the bank, leading to shares plunging on Thursday, March 9. On Friday, March 10, regulators shut down the bank.