United States: at the great South by Southwest festival, the bankruptcy of SVB weighs down morale

In the aisles of the Austin Convention Center, at the opening of the South by Southwest festival, March 10, 2023. Jack Plunkett/Invision/AP - Jack Plunkett

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At this high mass of innovation and creation, South by Southwest, which is currently taking place in Austin, Texas, the vast majority of participating start-ups have their money in this bank.

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With our special correspondent in Austin,

Thomas Harms

As of Friday, on stage, start-up executives and investors answered questions about the bankruptcy of SVB, and looked anxiously at their phones, others canceled their participation in the great American festival of creation, audiovisual - created in 1987, it brings together nearly 280,000 people from more than 100 countries.

The festival opened on March 10.

The same day, Silicon Valley Bank, specializing in start-ups, the 16th largest bank in the United States,

went bankrupt

.

 Two weeks ago, we just put our money in SVB, and Thursday we learn that we have nothing left.

It's crap

, says Simone May, founder of Clutch, a marketing platform for creators.

We were in shock!

It is the 16th bank in the country, it is the bank of 40% of start-ups.

It would have been catastrophic if all that money had disappeared.

 The federal government

promised on Sunday

that funds from SVB savers at Signature Bank, also affected, would remain accessible.

The Texas city of Austin has positioned itself for years as the alternative to Silicon Valley (California).

It attracted many start-ups and investors, but all of them kept their funds in the Californian bank SVB.

“ 

I didn't believe it!

, admits Gaurav Khandewal, the founder of Velostics, a warehouse booking platform.

 I was on a What'sApp group with a thousand box owners, all SVB customers.

We said to ourselves, if this happens with this bank, all the other banks will go under.

 »

In a televised address before the opening of Wall Street, the American president announced the opening of an emergency loan program. 

To read also: Bankruptcy of Silicon Valley Bank: the authorities try to reassure the markets despite the panic

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