The unexpected shutdown of Silicon Valley Bank (SVB) has sent shockwaves throughout the tech industry, with repercussions for several Southern California tech companies. Silicon Valley Bank had invested in local tech firms through its Silicon Valley Bank Capital venture arm.
Let’s explore some of the Southern California tech firms with money tied up with SVB:
Suiteness: Based in Walnut, Suiteness developed an app for booking adjoining hotel rooms or suites. The company had debt financing from SVB, which it paid off last year. Founder Kyle Killion mentioned that they could have obtained a better deal if they had waited to pay off the debt, as it might have been sold to another bank at a discount.
Pathmatics: Santa Monica-based Pathmatics, a mobile ad analytics company, had raised debt funding from SVB before being acquired by SensorTower in May 2021. Gabe Gottlieb, Pathmatics’ founder, praised SVB’s support and the favorable terms they received.
EcoSense: This LED luminaire company had debt financing from SVB in late June 2020. EcoSense has made acquisitions in the LED industry and is now owned by Korrus, a Chinatown-based lighting company.
Fulcrum Microsystems: Fulcrum Microsystems, a semiconductor company in Calabasas, received investment from SVB Capital back in March 2007. It was later acquired by Intel in July 2011, enhancing Intel’s data center capabilities.
HealthTap: Sunnyvale-based HealthTap, a virtual doctor appointment app, raised debt financing from SVB in April 2020. HealthTap focuses on healthtech and had partnered with Samsung to enable virtual medical exams via Samsung Smart TVs.
Kandji: Based in San Diego, Kandji offers device management software for IT teams using Apple products. The company secured investments from SVB Capital, raising $60 million in March 2021 and another $100 million less than a year later. Kandji has garnered substantial funding since its 2018 launch.
Shield AI: San Diego-based Shield AI is developing Hivemind, an artificial intelligence pilot for autonomous planes. SVB participated in Shield AI’s funding rounds, including a $225 million Series E round in December 2022 and a $22 million Series B round in April 2019. Shield AI has raised $575 million since its inception and collaborates with Boeing on unmanned flight technologies.
SVB’s unexpected shutdown has significant implications for these Southern California tech firms, as they navigate the challenges of repaying their debts and adapting to potential new loan terms.