Climate activist companies at risk after SVB collapse, bank was vital to 'climate-tech sector'

"Silicon Valley Bank (SVB) was an integral part of the early-stage climate tech community."

ADVERTISEMENT
Image
Joshua Young North Carolina
ADVERTISEMENT

Silicon Valley Bank collapsed on Friday and following its seizure by regulators with the Federal Deposit Insurance Corporation (FDIC) it has been revealed that the bank was vital to the "climate-tech sector," in addition to it being heavily used by tech companies based in Northern California and many venture-backed companies. 

According to Heatmap News, a managing director at climate change venture capital firm Prelude Ventures, Gabriel Kra, said, "Silicon Valley Bank (SVB) was an integral part of the early-stage climate tech community and I hope that they survive in some form to continue that role."

The outlet reports that SVB "bragged" on its website about its support of hydrogen, solar, and energy-storage companies, noting that the bank provided finance to the community solar industry upwards of 60 percent.

The largest residential solar company in America, Sunrun, received a revolving line of credit from SVB before its fall. 

Kra said, "They were careful, thoughtful, and willing lenders to early-stage companies."

"As a bank, they were focused on that segment of the ecosystem and they understood the risks they were taking more than a bank that wasn’t focused," Kra added.

Clay Dumas, a founding partner in a climate activist venture fund with money in SVB, Lowercarbon Capital, said, "The downfall of SVB will launch a thousand tweet threads, but right now our focus is securing payrolls for the Lowercarbon portfolio companies whose cash is tied up so they can keep up their planet-healing work."

Before its fall, the bank "sponsored events for climate VCs and startups — including one at the Lake Tahoe Ritz Carlton as recently as last week," according to the outlet.

Kra said many companies that relied on SVB could now face "catastrophic effects." 

"Losing access to their cash balance for potentially several months can have catastrophic effects," Kra said "And a small portion of companies in the space are probably looking at that possibility and figuring out how to avoid it." 

ADVERTISEMENT
ADVERTISEMENT
Sign in to comment

Comments

Powered by StructureCMS™ Comments

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

ADVERTISEMENT
ADVERTISEMENT
By signing up you agree to our Terms of Use and Privacy Policy
ADVERTISEMENT
© 2024 The Post Millennial, Privacy Policy