Silicon Valley Bank ‘exposed themselves’ loaning money to ‘cash poor’ tech start-ups #Silicon #Valley #Bank #exposed #loaning #money #cash #poor #tech #startups #englishheadline

University of Sydney Head of Business and Finance Prof. Eliza Wu says Silicon Valley Bank “exposed themselves” to difficulty gaining funds back by handing out loans to start-up tech companies which are typically “cash poor”.

“In the case of Silicon Valley Bank they’ve exposed themselves to a lot of loans made to start-up tech companies – typically cash poor so it’s very hard to be able to get funds back when you need to,” Ms Wu told Englishheadline host Ross Greenwood.

“Especially when you’ve got large investors that are withdrawing funds from the financial institution.”