Canva co-founder Cliff Obrecht has vowed to support Silicon Valley Bank should it come back from the dead, after the financial institution, which reportedly carried cash deposits for the graphic design titan, suffered one of the most spectacular bank collapses since the 2008 Global Financial Crisis.
Silicon Valley Bank (SVB) fell into receivership Friday following its decision to sell US government bonds at a US$1.8 billion loss.
That announcement alone was not enough to topple the bank, which boasted assets north of US$212 billion (AU$310 billion) at the end of 2022.
However, major depositors, fearing the loss on SVB’s bonds could influence the bank’s liquidity, rushed to withdraw their holdings.
Withdrawals snowballed, leading US regulators to close down the bank, freeze its assets, and transfer balances to a new “bridge bank” overseen by the Federal Deposit Insurance Corporation (FDIC).
After days of panic and widespread concerns major depositors could have their funds wiped out, the FDIC yesterday confirmed all depositors will be made whole, not just those with balances under the standard US$250,000 safety net.
The news would have come as a relief to Canva, which the Australian Financial Review reports held significant cash deposits with SVB.
A small but significant group of ASX-listed companies, including Nitro, Xero, and Redbubble, also counted tens of millions of dollars in exposure to the collapsed bank.
At the same time as Canva and others prepare for renewed access to their funds, the FDIC is looking to offload the remnants of SVB to a new owner.
An auction that took place over the weekend failed to find a buyer, the Wall Street Journal states, with regulators reportedly gearing up for another attempt.
Taking to LinkedIn, Canva chief operating officer Obrecht said his company is still willing to do business with SVB should the institution make a comeback.
“We will 100% be supporting SVB if they are acquired and continue operating,” he wrote.
“They have supported Canva from day 1 when we had nothing and are an incredible team of humans who offer great services and products.
“To not have SVB in the startup and growth company ecosystem would be a huge loss.”
Canva renewing a banking relationship with SVB would be a major coup for the reimagined institution, given the flood of capital which has escaped the institution.
Depositors rushed to establish new external accounts in the initial bank run, providing a boon to firms like Airwallex in the process, and those which missed out are gearing up to siphon their frozen deposits into other institutions.
Nevertheless, other industry figures claim SVB was particularly well-positioned to deal with the needs of the tech sector.
Obrecht also shared a short open letter, signed by major venture capital firms, which hailed SVB as a champion for the tech and startup scene.
“Silicon Valley Bank has been a trusted and long-time partner to the venture capital industry and our founders,” said the letter, published before the FDIC guaranteed all deposit-holders would see their cash again.
“In the event that ASVB were to be purchased and appropriately capitalised, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
