March 23

Diaspora Remittances, Impact of SVB’s Failure on African Startups in Focus as African Diaspora Investment Symposium Begins

By Tope Templer Olaiya, Silicon Valley

As innovators, investors and world leaders converge in Silicon Valley, California, United States, on Wednesday to discuss the future of Africa at the African Diaspora Investment Symposium (ADIS), attention would be divided over the ripple effect of the collapse of Silicon Valley Bank (SVB), the bank of choice for most startups and venture capitalists, and the influence it had on the startup world, especially fintechs in Africa.

This is as a new study has said 186 more banks are at risk of failure even if only half of their depositors decide to withdraw their funds on the heels of SVB’s collapse earlier this month. According to the study by economists in a paper published on the Social Science Research Network, a run on the banks could pose a potential risk to even insured depositors – those with $250,000 or less in their accounts.
Photo courtesy of Images George Rex.

Source: The Guardian (link opens in a new window)

Technology, Telecommunications
failure, fintech, remittances, startups