Silicon Valley Bank UK - message from techUK CEO Julian David
You will be aware that SVB UK has been placed in insolvency measures by the Bank of England as has its US parent by the authorities in the US.
The communications from the Bank of England have been unclear and, for tech, misleading as they have stressed the fact that SVB is not a major player in the overall UK financial system. This is accurate at one level but ignores the significance of SVB UK to the tech startup and scaleup economy. This is not just as a major player in funding growth businesses across tech from fintech to biotech and other areas but also its role as the main bank used by such companies for loans and deposits. This has led to many companies facing operational questions with regard to making payroll and supplier payments as well as the issue of future funds for growth.
It is not yet clear to us how significant a financial partner SVB UK is for techUK members, but it is clear that it is essential to the overall UK tech scene and that a solution to this problem must be found quickly.
I joined a call on Saturday with HM Treasury, Number 10, DSIT ministers and officials led by Secretary of State for Science, Innovation and Technology Michelle Donelan and Andrew Griffith, Economic Secretary to the Treasury. I was among many figures who work across the innovation and tech startup and scaleup scene and across the UK finance industry.
The call was about getting input from us all about the nature and scale of the problem and views on possible actions. This was certainly achieved but it was also reassuring to know that government at the highest level does understand the significance of this matter and the need for speed to resolve it and avoid the risk of firms failing and contagion spreading across the wider financial and tech ecosystem.
Treasury officials have already been developing options to achieve the objective of protecting firms in our sector and we were clearly told 'We value this sector'!
The techUK team will keep focus on this over the next hours and days but we are also keen to hear from members if they or associated companies are affected. We have been invited to feed in any further information to DSIT and HM Treasury.
Companies can also do this directly to the Treasury via email to [email protected] with SVB UK in the subject line and with your company name and any relevant details of your exposure to a failure of SVB UK.
Julian David
CEO, techUK
For more information please contact:
Julian David
Julian David
Julian David is the CEO of techUK, the leading technology trade association that aims to realise the positive outcomes that digital technology can achieve for people, society, the economy and the planet.
Julian led the transformation of techUK from its predecessor Intellect in 2014, putting an increased focus on the growth and jobs the technology industry offers in a global economy. He has since led its impressive expansion driving forward the tech agenda in key areas such as skills, innovation, business success and public sector transformation. He leads techUK’s 90-strong team representing a thousand British based tech companies, comprising global and national champions and 600 SMEs. In 2020, techUK joined forces with TechSkills, the employer-led organisation that aims to improve the flow of talent into the digital workforce and open up access for all to high value tech jobs.
Julian represents techUK on a number of external bodies including the Digital Economy Council, the National Cyber Security Advisory Council and the Department of Business and Trade’s Strategic Trade Advisory Group. He is member of the NTA Advisory Board of DIGITALEUROPE and is a member of the Board of the Health Innovation Network the South London Academic Health Science Network.
Julian has over thirty years of experience in the technology industry. Prior to joining techUK, he had a series of leadership roles at IBM including Vice President for Small and Medium Business and Public Sector. After leaving IBM he worked as a consultant helping tech SMEs establish successful operations in the U.K. His personal interests include Football (West Ham, Balham FC and Real Madrid) and Art.
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- [email protected]
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- @techUKCEO
