SVB collapse forces African startups to rethink their banking options

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The collapse of Silicon Valley Bank (SVB) last week sent shockwaves through startup ecosystems around the world, and it has emerged that millions of dollars held by African startups and venture capital funds at the bank were at risk until the United States Federal Reserve intervened to save the day.

Following the bank’s failure, African founders have been forced to reconsider their banking options in order to protect their startups from such events. Nala, a U.K.-based and Africa-focused mobile money transfer startup that was able to withdraw its funds from SVB before it collapsed, told TechCrunch that it is exploring partnerships with new large corporate banks, while the Pan-African fund Future Africa, which suffered “minimal exposure,” also hinted that it was interested in opening an account with a global banking institution.

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SVB collapse forces African startups to rethink their banking options

The collapse of Silicon Valley Bank (SVB) last week sent shockwaves through startup ecosystems around the world, and it has emerged that millions of dollars held by African startups and venture capital funds at the bank were at risk until the United States Federal Reserve intervened to save the day.

Following the bank’s failure, African founders have been forced to reconsider their banking options in order to protect their startups from such events. Nala, a U.K.-based and Africa-focused mobile money transfer startup that was able to withdraw its funds from SVB before it collapsed, told TechCrunch that it is exploring partnerships with new large corporate banks, while the Pan-African fund Future Africa, which suffered “minimal exposure,” also hinted that it was interested in opening an account with a global banking institution.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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