Opinion: What the demise of Silicon Valley Bank means – and does not mean – for marijuana finance

The collapse of Silicon Valley Bank (SVB) isn’t good news for anyone.

Bank collapses portend wider threats to the economy – the Great Depression is one such example – particularly when they derive from an eroding capital base resulting from the Federal Reserve raising interest rates to battle inflation.

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It is estimated that more than 50% of venture-backed companies used Santa Clara, California-headquartered SVB as their depository and financing institution.

Wealth management, currency hedges, stock placements, you name it: SVB was the go-to financial institution for the tech industry.

So SVB’s collapse is a big hurt for the tech start-up industry, a classic bank run.

The federal government’s stepping in and covering all deposits – not just those up to the $250,000 guaranteed limit – should help.

So, what is the effect of SVB’s demise on the cannabis industry?

Green disaster avoided

For once, the marijuana

The post Opinion: What the demise of Silicon Valley Bank means – and does not mean – for marijuana finance appeared first on GrowCola.com.

The collapse of Silicon Valley Bank (SVB) isn’t good news for anyone. Bank collapses portend wider threats to the economy… Continue reading
The post Opinion: What the demise of Silicon Valley Bank means – and does not mean – for marijuana finance appeared first on GrowCola.com.